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REGULATIONS NO. 9 : : : REVISED JULY, 1907 

• UNITED STATES INTERNAL REVENUE 


Revised Regulations concerning 

Oleomargarine 

also Adulterated Butter and Process or 
Renovated Butter 

UNDER INTERNAL REVENUE LAWS 

Act approved August 2, 1886 
Act approved October 1, 1890 
Act approved May 9, 1902 


WASHINGTON 
GOVERNMENT PRINTING OFFICE 
1907 













/ 



REGULATIONS NO. 9 : : : REVISED JULY, 1907 

UNITED STATES INTERNAL REVENUE 


Revised Regulations concerning 

Oleomargarine 


33 6 > 
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also Adulterated Butter and Process or 
Renovated Butter 


UNDER INTERNAL REVENUE LAWS 


Act approved August 2, 1886 
Act approved October 1, 1890 
Act approved May 9, 1902 


WASHINGTON 
GOVERNMENT PRINTING OFFICE 
1907 










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CONTENTS. 


Page. 

Oleomargarine, law_ 5-12 

Adulterated butter, law___12-16 

Renovated butter, law_ 12-16 

Oleomargarine, law constitutional (decision United States Supreme 

Court)_1_16-17 

Taxes imposed, list of_ 17 

Regulations: 

Authority for_ 19 

General, for collection of all taxes_19-23 

Oleomargarine: 

Defined_23-25 

Manufacturers______26-49 

Wholesale dealers_50-60 

Retail dealers_ 61-68 

Export_ 69-70 

Chemists and microscopists, examinations of samples, etc_70-73 

Microscope, use by officers_ 74-78 

Samples, suspected butter_ 78 

Imported oleomargarine___:_79-80 

Records: 

Collectors’ monthly and quarterly returns___81-84 

Blank forms and books!- 84 

Adulterated butter, regulations-^-85-94 

Renovated butter, regulations-95-106 


3 










































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OLEOMARGARINE LAW. 


(Act of August 2, 1886 (24 Stat., 209), as amended by acts of Octo¬ 
ber 1, 1890 (26 Stat., 621), and May 9, 1902, to make oleomar¬ 
garine and other imitation dairy products subject to the laws of 
any State, or Territory, or the District of Columbia into which 
they are transported, and to change the tax on oleomargarine, 
and to impose a tax, provide for the inspection, and regulate the 
manufacture and sale of certain dairy products, and to amend 
an act entitled “An act defining butter, also imposing a tax upon 
and regulating the manufacture, sale, importation, and expor¬ 
tation of oleomargarine,” approved August 2, 1886.) 

Be it enacted by the Senate and House of Representa¬ 
tives of the United Stcttes of America in Congress assem¬ 
bled, That all articles known as oleomargarine, butterine, 
imitation, process, renovated, or adulterated butter, or 
imitation cheese, or any substance in the semblance of 
butter or cheese not the usual product of the dairy and 
not made exclusively of pure and unadulterated milk or 
cream, transported into any State or Territory or the Dis¬ 
trict of Columbia, and remaining therein for use, con¬ 
sumption, sale, or storage therein shall, upon the arrival 
within the limits of such State or Territory or the District 
of Columbia, be subject to the operation and effect of the 
laws of such State or Territory or the District of Colum¬ 
bia, enacted in the exercise of its police powers to the same 
extent and in the same manner as though such articles or 
substances had been produced in such State or Territory 
or the District of Columbia, and shall not be exempt there¬ 
from by reason of being introduced therein in original 
packages or otherwise. 

Section 1, act of August 2, 1886: 

That for the purpose of this act the word “ butter ” ni ?ionof. defi ’ 
shall be understood to mean the food product usually 
known as butter, and which is made exclusively from 
milk or cream, or both, with or without common salt, and 
with or without additional coloring matter. 

Section 2, act of August 2, 1886: 

That for the purposes of this act certain manufactured ri ® e leo d “^ i f i ^ 
substances, certain extracts, and certain mixtures and com- of. ’ 
pounds, including such mixtures and compounds with 
butter, shall be known and designated as “ oleomarga¬ 
rine,” namely: All substances heretofore known as oleo¬ 
margarine, oleo, oleomargarine-oil, butterine, lardine, 
suine, and neutral; all mixtures and compounds of oleo¬ 
margarine, oleo, oleomargarine-oil, butterine, lardine, 
suine, and neutral; all lard extracts and tallow extracts; 

(5) 



6 


Special tax. 

Manufacturer 

defined. 


Special tax of 
wholesale deal¬ 
er. 


Special tax < 
retail dealer. 


Exception. 


and all mixtures and compounds of tallow, beef-fat, suet, 
lard, lard-oil, vegetable oil, annotto, and other coloring 
matter, intestinal fat, and offal fat made in imitation or 
semblance of butter, or when so made, calculated or in¬ 
tended to be sold as butter or for butter. 

Section 3, act of August 2, 1886, as amended by section 
2 of the act of May 9, 1902, provides as follows: 

That special taxes are imposed as follows: 

Manufacturers of oleomargarine shall pay six hundred 
dollars. Every person who manufactures oleomargarine 
for sale shall be deemed a manufacturer of oleomargarine. 

And any person that sells , vends , or f urnishes oleomar¬ 
garine for the use and consumption of others , except to his 
own family table without compensation , who shall add to 
or mix . with such oleomargarine any artificial coloration 
that causes it to look like butter of any shade of yellow 
shall also be held to be a manufacturer of oleomargarine 
within the meaning of said Act , and subject to the pro¬ 
visions thereof. 

Wholesale dealers in oleomargarine shall pay four hun¬ 
dred and eighty dollars. Every person who sells or offers 
for sale oleomargarine in the original manufacturer’s 
packages shall be deemed a wholesale dealer in oleomar¬ 
garine. But any manufacturer of oleomargarine who has 
given the required bond and paid the required special tax, 
and who sells only oleomargarine of his own production, 
at the place of manufacture, in the original packages to 
which the tax-paid stamps are affixed, shall not be re¬ 
quired to pay the special tax of a wholesale dealer in oleo¬ 
margarine on account of such sales. 

Retail dealers in oleomargarine shall pay forty-eight 
dollars. Every person who sells oleomargarine in less 
quantities than ten pounds at one time shall be regarded 
as a retail dealer in oleomargarine. And sections thirty- 
two hundred and thirty-two, thirty-two hundred and 
thirty-three, thirty-two hundred and thirty-four, thirty- 
two hundred and thirty-five, thirty-two hundred and 
thirty-six, thirty-two hundred and thirty-seven, thirty- 
two hundred and thirty-eight, thirty-two hundred and 
thirty-nine, thirty-two hundred and forty, thirty-two 
hundred and forty-one, and thirty-two hundred" and 
forty-three of the Revised Statutes of the United States 
are, so far as applicable, made to extend to and include 
and apply to the special taxes imposed by this section, and 
to the persons upon whom they are imposed: Provided 
further , That wholesale dealers who vend no other-oleo¬ 
margarine or butterine except that upon which a tax of 
one-fourth of one cent per pound is imposed by this Act , 
as amended , shall pay two hundred dollars; and such 
retail dealers as vend no other oleomargarine or butterine 
except that upon which is imposed by this Act , as 
emended , a tax of one-fourth of one cent per pound shall 
pay six dollars . 


7 


Section 4, act of August 2, 1886: 

That every person who carries on the business of a man- vi< J®^y g 
ufacturer of oleomargarine without having paid, the manufacturer/ 
special tax therefor, as required by law, shall, besides being 
liable to the payment of the tax, be fined not less than one 
thousand and not more than five thousand dollars; and 
every person who carries on the business of a wholesale 
dealer in oleomargarine without having paid the special 
tax therefor, as required by law, shall, besides being liable 
to the payment of the tax, be fined not less than five hun¬ 
dred nor more than two thousand dollars; and every per¬ 
son who carries on ,the business of a retail dealer in oleo¬ 
margarine without having paid the special tax therefor, 
as required by law, shall, besides being liable to the pay¬ 
ment of the tax, be fined not less than fifty nor more than 
five hundred dollars for each and every offense. 

Section 5, act of August 2,1886:' 

That every manufacturer of oleomargarine shall notices’ 

with the collector of internal revenue of the district in invent o r i e s ’ 
which his manufactory is located such notices, inven-^Jg 13 ^ k s ’ 
tories, and bonds, shall keep such books and render such 
returns of material and products, shall put up such signs 
and affix such number to his factory, and conduct his busi¬ 
ness under such surveillance of officers and agents as the 
Commissioner of Internal Revenue, with the approval of 
the Secretary of the Treasury, may, by regulation, re¬ 
quire. But the bond required of such manufacturer shall 
be with sureties satisfactory to the collector of internal 
revenue, and in a penal sum of not less than five thousand 
dollars; and the sum of said bond may be increased from 
time to time and additional sureties required at the dis¬ 
cretion of the collector, or under instructions of the Com¬ 
missioner of Internal Revenue. 

Section 6, act of August 2, 1886: 

That all oleomargarine shall be packed by the manu- tu JJrs ,n oiigfnai 
facturer thereof in firkins, tubs, or other wooden pack- packages. s 
ages not before used for that purpose, each containing not 
less than ten pounds, and marked, stamped, and branded 
as the Commissioner of Internal Revenue, with the ap¬ 
proval of the Secretary of the Treasury, shall prescribe; 
and all sales made by manufacturers of oleomargarine, 
and wholesale dealers in oleomargarine shall be in original 
stamped packages. Retail dealers in oleomargarine must Retail deal- 
sell only from original stamped packages, in quantities ers pac ages ' 
not exceeding ten pounds, and shall pack the oleomarga¬ 
rine sold by them in suitable wooden or paper packages 
which shall be marked and branded as the Commissioner 
of Internal Revenue, with the approval of the Secretary 
of the Treasury, shall prescribe. Every person who 
knowingly sells or offers for sale, or delivers or offers to 
deliver, any oleomargarine in any other form than in new 
wooden or paper packages as above described, or who 


8 


Penalties. 


Caution label 
of manufactur¬ 
ers. 


Tax per 
pound. 


Tax repre¬ 
sented by cou¬ 
pon stamps. 


Assess m e n t 
of tax within 
two years. 


packs in any package any oleomargarine in any manner 
contrary to law, or who falsely brands any package or 
affixes a stamp on any package denoting a less amount of 
tax than that required by law shall be fined for each 
offense not more than one thousand dollars, and be im¬ 
prisoned not more than two j^ears. 

Section 7, act of August 2, 1886: 

That every manufacturer of oleomargarine shall se¬ 
curely affix, by pasting, on each package containing oleo¬ 
margarine manufactured by him, a label on which shall 
be printed, besides the number of the manufactory and the 
district and State in which it is situated, these words: 
“ Notice—The manufacturer of the oleomargarine herein 
contained has complied with all the requirements of law. 
Every person is cautioned not to use either this package 
again or the stamp thereon again, nor to remove the con¬ 
tents of this package wuthout destroying said stamp, 
under the penalty provided by law in such cases.” Every 
manufacturer of oleomargarine who neglects to affix such 
label to any package containing oleomargarine made by 
him, or sold or offered for sale by or for him, and every 
person who removes any such label so affixed from any 
such package, shall be fined fifty dollars for each package 
in respect to which such offense is committed. 

Section 8, act of August 2, 1886, as amended by Section 
3, act of May 9,1902: 

That upon oleomargarine which shall he manufactured 
and sold , or removed for consumption or use , there shall 
he assessed and collected a tax of ten cents per pound , to 
he paid hy the manufacturer thereof; and any fractional 
2 )art of a pound in a package shall he taxed as a pound: 
Provided , When oleomargarine is free from artificial col¬ 
oration that causes it to look like hutter of any shade of 
yellow said tax shall he one-fourth of one cent per pound. 
The tax levied hy this section shall he represented hy 
coupon stamps; and the provisions of existing laws gov¬ 
erning the engraving , issue , sale , accountability , efface- 
ment , and destruction of stamps relating to tobacco and 
snuff , as far as applicable , are hereby made to apply to 
stamps provided for hy this section . 

Section 9, act of August 2, 1886: 

That whenever any manufacturer of oleomargarine 
sells, or removes for sale or consumption, any oleomar¬ 
garine upon which the tax is required to be paid by 
stamps, without the use of the proper stamps, it shall be 
the duty of the Commissioner of Internal Revenue, within 
a period of not more than two years after such sale or 
removal, upon satisfactory proof, to estimate the amount 
of tax which has been omitted to be paid, and to make an 
assessment therefor and certify the same to the collector. 
The tax so assessed shall be in addition to the penalties 
imposed by law for such sale or removal. 


9 


Section 10, act of August 2, 1886: 

That all oleomargarine imported from foreign countries Tax on im- 
- shall, m addition to any import duty imposed on the garine. 
same, pay an internal revenue tax of fifteen cents per 
pound, such tax to be represented by coupon stamps as stamps, 
in the case of oleomargarine manufactured in the United 
States. The stamps shall be affixed and canceled by the 
owner or importer of the oleomargarine while it is in the 
custody of the proper custom-house officers; and the oleo¬ 
margarine shall not pass out of the custody of said officers 
until the stamps have been so affixed and canceled, but 
shall be put up in wooden packages, each containing not 
less than ten pounds, as prescribed in this act for oleo¬ 
margarine manufactured in the United States, before the 
stamps are affixed; and the owner or importer of such 
oleomargarine shall be liable to all the penal provisions 
of this act prescribed for manufacturers of oleomarga¬ 
rine manufactured in the United States. Whenever it is im ^,rted 0l oiS? 
necessary to take any oleomargarine so imported to any margarine, 
place other than the public stores of the United States for 
the purpose of affixing and canceling such stamps, the 
collector of customs of the port where such oleomargarine 
is entered shall designate a bonded warehouse to which it 
shall be taken, under the control of such customs officer 
as such collector may direct; and every officer of customs 
who permits any such oleomargarine to pass out of his 
custody or control without compliance by the owner or 
importer thereof with the provisions of this section relat¬ 
ing thereto, shall be guilty of a misdemeanor, and shall be 
fined not less than one thousand dollars nor more thanNation f by 
five thousand dollars, and imprisoned not less than six customs officer, 
months nor more than three years. Every person who 
sells or offers for sale any imported oleomargarine, or 
oleomargarine purporting or claimed to have been im¬ 
ported, not put up in packages and stamped as provided 
by this act, shall be fined not less than five hundred dol- semjg^if l°ot 
lars nor more than five thousand dollars, and be im- p J m ° pe p d e r 1 y 
prisoned not less than six months nor more than two 
years. 

Section 11, act of August 2, 1886: 

That every person who knowingly purchases or re- purchasing de¬ 
ceives for sale any oleomargarine which has not been ^ m r ai jarme not 
branded or stamped according to law shall be liable to a stamped, 
penalty of fifty dollars for each such offense. 

Section 12, act of August 2, 1886 : 

That every person who knowingly purchases or re- pu p r e Ch a Y s 
ceives for safe any oleomargarine from any manufacturer 
who has not paid the special tax shall be liable for each ing paid special 
offense to a penalty of one hundred dollars, and to a for- tax * 
feiture of all articles so purchased or received, or of the 
full value thereof. 


10 


Stamps on 
empty packages 
to be destroyed. 


Penalty. 


Chemists and 
microscoplsts. 


Commissioner 
to decide con¬ 
tested cases. 


Appeal. 


Forfeiture of 
unstamped 
packages and 
deleterious ole¬ 
omargarine. 


Penalty for 
removing 
stamps. 


Section 13, act of August 2, 1886: . 

That whenever any stamped package containing oleo¬ 
margarine is emptied, it shall be the duty of the person in 
whose hands the same is to destroy utterly the stamps 
thereon; and any person who willfully neglects or refuses 
so to do shall for each such offense be fined not exceeding 
fifty dollars, and imprisoned not less than ten days nor 
more than six months. And any person who fraudu¬ 
lently gives away or accepts fi*om another, or who sells, 
buys, or uses for packing oleomargarine, any such 
stamped package, shall for each such offense be fined not 
exceeding one hundred dollars, and be imprisoned not 
more than one year. Any revenue officer may destroy 
any emptied oleomargarine package upon which the tax- 
paid stamp is found. 

Section 14, act of August 2,1886: 

That there shall be in the office of the Commissioner of 
Internal Revenue an analytical chemist and a microscop- 
ist, who shall each be appointed by the Secretary of the 
Treasury, and shall each receive a salary of two thousand 
five hundred dollars per annum; and the Commissioner 
of Internal Revenue may, whenever in his judgment the 
necessities of the service so require, employ chemists and 
microscopists, to be paid such compensation as he may 
deem proper, not exceeding in the aggregate any appro¬ 
priation made for that purpose. And such Commissioner 
is authorized to decide what substances, extracts, mix¬ 
tures, or compounds which may be submitted for his in¬ 
spection in contested cases are to be taxed under this act; 
and his decision in matters of taxation under this act 
shall be final. The Commissioner may also decide 
whether any substance made in imitation or semblance of 
butter, and intended for human consumption, contains 
ingredients deleterious to the public health; but in case 
of doubt or contest his decision in this class of cases may 
be appealed from to a board hereby constituted for the 
purpose, and composed of the Surgeon-General of the 
Army, the Surgeon-General of the Navy, and the Com¬ 
missioner (now Secretary) of Agriculture; and the deci¬ 
sions of this board shall be final in the premises. 

Section 15, act of August 2, 1886: 

That all packages of oleomargarine subject to tax under 
this act that shall be found without stamps or marks as 
herein provided, and all oleomargarine intended for 
human consumption which contains ingredients adjudged, 
as hereinbefore provided, to be deleterious to the public 
health, shall be forfeited to the United States. Any per¬ 
son who shall willfully remove or deface the stamps, 
marks, or brands on a package containing oleomargarine 
taxed as provided herein shall be guilty of a misde¬ 
meanor, and shall be punished by a fine of not less than 


11 


one hundred dollars nor more than two thousand dollars, 
and by imprisonment for not less than thirty days nor 
more than six months. 

Section 16, act of August 2, 1886: 

That oleomargarine may be removed from the place of rinefo? 1 S o?t' 
manufacture for export to a foreign country without pay- Une ° l expQ1 
ment of tax or affixing stamps thereto, under such regu¬ 
lations and the filing of such bonds and other security as 
the Commissioner of Internal Revenue, with the approval 
of the Secretary of the Treasury, may prescribe. Every 
person who shall export oleomargarine shall brand upon 
every tub, firkin, or other package containing such article 
the word “ Oleomargarine,” in plain Roman letters not 
less than one-half inch square. 

Section 17, act of August 2, 1886: 

That whenever any person engaged in carrying on the Forfeiture 
business of manufacturing oleomargarine defrauds, orcaseo^fraudby 
attempts to defraud, the United States of the tax on the manufacturer 
oleomargarine produced by him, or any part thereof, he 
shall forfeit the factory and manufacturing apparatus 
used by him, and all oleomargarine and all raw material 
for the production of oleomargarine found in the factory 
and on the factory premises, and shall be fined not less 
than five hundred dollars nor more than five thousand 
dollars, and be imprisoned not less than six months nor 
more than three years. 

Section 18, act of August 2, 1886: 

That if any manufacturer of oleomargarine, any dealer a r t ° 

therein, or any importer or exporter thereof shall know-comply 1 w 11 h 
ingly or willfully omit, neglect, or refuse to do, or cause law - 
to be done, any of the things required by law in the carry¬ 
ing on or conducting of his business, or shall do anything 
by this act prohibited, if there be no specific penalty or 
punishment imposed by any other section of this act for 
the neglecting, omitting, or refusing to do, or for the 
•doing or causing to be done, the thing required or pro¬ 
hibited, he shall pay a penalty of one thousand dollars; 
and if the person so offending be the manufacturer of or 
a wholesale dealer in oleomargarine, all the oleomargarine 
owned by him, or in which he has any interest as owner, 
shall be forfeited to the United States. 

Section 19, act of August 2, 1886: 

That all fines, penalties, and forfeitures imposed by fln e§ covery o£ 
this act may be recovered in any court of competent juris¬ 
diction. 

Section 20, act of August 2, 1886: 

That the Commissioner of Internal Revenue, with the Regulations, 
approval of the Secretary of the Treasury, may make all 
needful regulations for the carrying into effect of this act. 


12 


Butter de¬ 
fined. 


Adultera ted 
butter defined. 


Process o r 
renovated but¬ 
ter defined. 


Special tax of 
m anufacturers, 
renovated and 
adulterated 
butter. 


Section 21, act of August 2, 1886: 

That this act shall go into effect on the ninetieth day 
after its passage; and all wooden packages containing 
ten or more pounds of oleomargarine found on the prem¬ 
ises of any dealer on or after the ninetieth day succeeding 
the date of the passage of this act shall be deemed to be 
taxable under section eight of this act, and shall be taxed, 
and shall have affixed thereto the stamps, marks, and 
brands required by this act or by regulations made pur¬ 
suant to this act; and for the purpose of securing the 
affixing of the stamps, marks, and brands required by this 
act, the oleomargarine shall be regarded as having been 
manufactured and sold, or removed from the manufac¬ 
tory for consumption or use, on or after the day this act 
takes effect; and such stock on hand at the time of the 
taking effect of this act may be stamped, marked, and 
branded under special regulations of the Commissioner of 
Internal Revenue, approved by the Secretary of the 
Treasury; and the Commissioner of Internal Revenue 
may authorize the holder of such packages to mark and 
brand the same and to affix thereto’ the proper tax-paid 
stamps. 

Section 4, act of May 9, 1902: 

That for the purpose of this Act “ butter ” is hereby 
defined to mean an article of food as defined in “An Act 
defining butter, also imposing a tax upon and regulating 
the manufacture, sale, importation, and exportation of 
oleomargarine,” approved August second, eighteen hun¬ 
dred and eighty-six; that “ adulterated butter ” is hereby 
defined to mean a grade of butter produced by mixing, 
reworking, rechurning in milk or cream, refining, or in 
any way producing a uniform, purified, or improved prod¬ 
uct from different lots or parcels of melted or unmelted 
butter or butter fat, in which any acid, alkali, chemical, 
or any substance whatever is introduced or used for the 
purpose or with the effect of deodorizing or removing 
therefrom rancidity, or any butter or butter fat with 
which there is mixed any substance foreign to butter as 
herein defined, with intent or effect of cheapening in cost 
the product or auy butter in the manufacture or manipu¬ 
lation of which any process or material is used with intent 
or effect of causing the absorption of abnormal quantities 
of water, milk, or cream; that “ process butter ” or “ reno¬ 
vated butter ” is hereby defined to mean butter which has 
been subjected to any process by which it is melted, clari¬ 
fied or refined and made to resemble genuine butter, 
always excepting “ adulterated butter ” as defined by this 
Act. 

That special taxes are imposed as follows: 

Manufacturers of process or renovated butter shall pay 
fifty dollars per year and manufacturers of adulterated 
butter shall pay six hundred dollars per year. Every 


13 


person who engages in the production of process or reno¬ 
vated butter or adulterated butter as a business shall be 
considered to be a manufacturer thereof. 

Wholesale dealers in adulterated butter shall pay a tax special tax of 
of four hundred and eighty dollars per annum, and re- tinted ^utfer! 
tail dealers in adulterated butter shall pay a tax of forty- 
eight dollars per annum. Every person who sells adul¬ 
terated butter in less quantities than ten pounds at one 
time shall be regarded as a retail dealer in adulterated 
butter. 

Every person who sells adulterated butter shall be fin ^ ealer de ‘ 
regarded as a dealer in adulterated butter. And sections 
thirty-two hundred' and thirty-two, thirty-two hundred 
and thirty-three, thirty-two hundred and thirty-four, 
thirty-two hundred and thirty-five, thirty-two hundred 
and thirty-six, thirty-two hundred and thirty-seven, 
thirty-two hundred and thirty-eight, thirty-two hundred 
and thirty-nine, thirty-two hundred and forty, thirty- 
two hundred and forty-one, and thirty-two hundred • 
and forty-three of the Eevised Statutes of the United 
States are, so far as applicable, made to extend to and 
include and apply to the special taxes imposed by this 
section and to the person upon whom they are imposed. 

That every person who carries on the business of a 
manufacturer of process or renovated butter or adulter¬ 
ated butter without having paid the special tax therefor, 
as required by law, shall, besides being liable to the pay¬ 
ment of the tax, be fined not less than one thousand and Fines - 
not more than five thousand dollars; and every person 
who carries on the business of a dealer in adulterated 
butter without having paid the special tax therefor, as 
required by law, shall, besides being liable to the payment 
of the tax, be fined not less than fifty nor more than five 
hundred dollars for each offense. 

That every manufacturer of process or renovated butter tU re r \ n Sotfces* 
or adulterated butter shall file with the collector of bonds^invento- 
internal revenue of the district in which his manufactory 11Cb ’ e c ' 
is located such notices, inventories, and bonds, shall keep 
such books and render such returns of material and prod¬ 
ucts, shall put up such signs and affix such number of his , signs - 
factory, and conduct his business under such surveillance 
of officers and agents as the Commissioner of Internal 
Revenue, with the approval of the Secretary of the Treas¬ 
ury, may by regulation require. But the bond required 
of such manufacturer shall be with sureties satisfactory 
to the collector of internal revenue, and in a penal sum 
of not less than five hundred dollars; and the sum of 
said bond may be increased from time to time and addi¬ 
tional sureties required at the discretion of the collector 
or under instructions of the Commissioner of Internal 
Revenue. 

That all adulterated butter shall be packed by the tu f er % n J * J JI 
manufacturer thereof in firkins, tubs, or other wooden ages, 
packages not before used for that purpose, each contain- * 


14 


Dealers’ 

packages. 


Caution label. 


Tax on adul¬ 
terated butter 
and process or 
renovated but¬ 
ter. 


Stamps. 


ing not less than ten pounds, and marked, stamped, and 
branded as the Commissioner of Internal Revenue, with 
the approval of the Secretary of the Treasury, shall pre¬ 
scribe; and all sales made by manufacturers of adulter¬ 
ated butter shall be in original stamped packages. 

Dealers in adulterated butter must sell only original or 
from original stamped packages, and when such original 
stamped packages are broken the adulterated butter sold 
from same shall be placed in suitable wooden or paper 
packages, which shall be marked and branded as the Com¬ 
missioner of Internal Revenue, with the approval of the 
Secretary of the Treasury, shall prescribe. Every person 
who knowingly sells or offers for sale, or delivers or offers 
to deliver, any adulterated butter in any other form than 
in new wooden or paper packages as above described, or 
who packs in any package any adulterated butter in any 
manner contrary to law, or who falsely brands any pack¬ 
age or affixes a stamp on any package denoting a less 
amount of tax than that required by law, shall be fined 
for each offense not more than one thousand dollars and 
be imprisoned not more than two years. 

That every manufacturer of adulterated butter shall 
securely affix, by pasting, on each package containing 
adulterated butter manufactured by him a label on which 
shall be jminted, besides the number of the manufactory 
and the district and State in which it is situated, these 
words: “ Notice.—That the manufacturer of the adulter¬ 
ated butter herein contained has complied with all the re¬ 
quirements of law. Every person is cautioned not to use 
either this package again or the stamp thereon, nor to 
remove the contents of this package without destroying 
said stamp, under the penalty provided by law in such 
cases.” Every manufacturer of adulterated butter who 
neglects to affix such label to any package containing 
adulterated butter made by him, or sold or offered for sale 
for or by him, and every person who removes any such 
label so affixed from any such package shall be fined fifty 
dollars for each package in respect to which such offense 
is committed. 

That upon adulterated butter, when manufactured or 
sold or removed for consumption or use, there shall be 
assessed and collected a tax of ten cents per pound, to be 
paid by the manufacturer thereof, and any fractional part 
of a pound shall be taxed as a pound, and that upon proc¬ 
ess or renovated butter, when manufactured or sold or 
removed for consumption or use, there shall be assessed 
and collected a tax of one-fourth of one cent per pound 
to be paid by the manufacturer thereof, and any frac¬ 
tional part of a pound shall be taxed as a pound. The 
tax to be levied by this section shall be represented by 
coupon stamps, and the provisions of existing laws gov¬ 
erning engraving, issuing, sale, accountability, effacement, 
and destruction of stamps relating to tobacco and snuff, 


15 


as far as applicable, are hereby made to apply to the 
stamps provided by this section. 

That the provisions of sections nine, ten, eleven, twelve, 
thirteen, fourteen, fifteen, sixteen, seventeen, eighteen, 
nineteen, twenty, and twenty-one of “An Act defining 
butter, also imposing a tax upon and regulating the man¬ 
ufacture, sale, importation, and exportation of oleomar¬ 
garine,” approved August second, eighteen hundred and 
eighty-six, shall apply to manufacturers of “ adulterated 
butter ” to an extent necessary to enforce the marking, 
branding, identification, and regulation of the exportation 
and importation of adulterated butter. 

Section 5, act of May 9, 1902: 

All parts of an Act providing for an inspection of re n^vated i0 but f 
meats for exportation, approved August thirtieth, eight- ter. 
een hundred and ninety, and of an Act to provide for the 
inspection of live cattle, hogs, and the carcasses and prod¬ 
ucts thereof which are the subjects of interstate com¬ 
merce, approved March third, eighteen hundred and 
ninety-one, and of amendment thereto approved March 
second, eighteen hundred and ninety-five, which are ap¬ 
plicable to the subjects and purposes described in this sec¬ 
tion shall apply to process or renovated butter. And the 
Secretary of Agriculture is hereby authorized and re¬ 
quired to cause a rigid sanitary inspection to be made, at 
such times as he may deem proper or necessary, of all 
factories and storehouses where process or renovated 
butter is manufactured, packed, or prepared for market, 
and of the products thereof and materials going into the 
manufacture of the same. All process or renovated but¬ 
ter and the packages containing the same shall be marked re nJvated S but £ 
with the words “ Renovated Butter ” or “ Process But- ter. 
ter ” and by such other marks, labels, or brands and in 
such manner as may be prescribed by the Secretary of 
Agriculture, and no process or renovated butter shall be 
shipped or transported from its place of manufacture 
into any other State or Territory or the District of Co¬ 
lumbia, or to any foreign country, until it has been 
marked as provided in this section. The Secretary of A t y ur°e 
Agriculture shall make all needful regulations for car- shall niake reg- 
rying this section into effect, and shall cause to be ascer- u a lons ' 
tained and reported from time to time the quantity and 
quality of process or renovated butter manufactured, and 
the character and the condition of the material from 
which it is made. And he shall also have power to ascer¬ 
tain whether or not materials used in the manufacture of 
said process or renovated butter are deleterious to health 
or unwholesome in the finished product, and in case such 
deleterious or unwholesome materials are found to be 
used in product intended for exportation or shipment 
into other States or in course of exportation or shipment 
he shall have power to confiscate the same. Any person, 
firm, or corporation violating any of the provisions oi 


16 


this section shall be deemed guilty of a misdemeanor and 
on conviction thereof shall be punished by a fine of not 
less than fifty dollars nor more thaii five hundred dollars 
or by imprisonment not less than one month nor more 
than six months, or by both said punishments, in the dis¬ 
cretion of the court. 

Section G, act of May 9, 1902: 

Returns, That wholesale dealers in oleomargarine, process, reno- 
wtSesafe tC dea°i- vated, or adulterated butter shall keep such books and 
ers render such returns in relation thereto as the Commis¬ 

sioner of Internal Revenue, with the approval of the Sec¬ 
retary of the Treasury, may, by regulation, require; and 
such books shall be open at all" times to the inspection of 
any internal revenue officer or agent. And any person 
who willfully violates any of the provisions of this sec¬ 
tion shall for each such offense be fined not less than fifty 
dollars and not exceeding five hundred dollars, and im¬ 
prisoned not less than thirty days nor more than six 
months. 

Section 7, act of May 9, 1902: 

This act shall take effect on the first day of July, nine¬ 
teen hundred and two. 


Oleomargarine law constitutional—Supreme Court decision in Mc¬ 
Cray v. United States. Decided May 31, 1004. 

i 902 Ct declared The law, act May 9, 1902, imposing a tax of 10 cents a 

constitutional, pound on oleomargarine artificially colored in imitation 
of butter and one-fourth of 1 cent per pound on uncol¬ 
ored oleomargarine is constitutional. The courts can not 
hold a tax void because it is deemed too high. Although 
the effect of the tax in question may be to repress the 
manufacture of artificially colored oleomargarine, it is 
not on that account a violation of fundamental rights. 
An act of Congress exerting the taxing power can not be 
avoided on the ground that it is an abuse of power. 
Whilst the statute recognized the right of a manufacturer 
to use any or all of the authorized ingredients so as to 
make oleomargarine, and also authorized as one of the 
ingredients butter artificially colored, if the manufacturer 
elected to use such ingredient last mentioned, and thereby 
gave to his manufactured product artificial coloration, 
such product so colored, although being oleomargarine, 
w r as not within the exception created by the proviso, and 
therefore came under the general rule subjecting oleo¬ 
margarine to the tax of ten cents a pound. (Vol. 7, 
Treas. Dec. (1904), Decision No. 795. Supreme Court of 
the United States. No. 801. October Term, 1903. Leo 
W. McCray, plaintiff in error, v. United States.) 



17 


Oleomargarine—Opinion of Supreme Court in the palm-oil case— 
Supreme Court of the United States—No. 19—October term, 
1904—August Cliff, plaintiff in error, v. United States, October 
24, 1904. 

One of the purposes of the oleomargarine legislation 
was to prevent the sale of oleomargarine as and for butter. 
When any substance, although named as a possible ingre¬ 
dient of oleomargarine, serves only the function of color¬ 
ing the mass so as to cause it to u look like butter of any 
shade of yellow,” it is an artificial coloration, and the 
product is subject to a tax of 10 cents per pound. (Treas. 
Dec. Nos. 615, 839.) . 

Regulations prescribed by the Commissioner of Inter¬ 
nal Revenue, with the approval of the Secretary of the 
Treasury, in regard to marks and brands on packages of 
oleomargarine, are authorized by law. They are matters 
of detail confided to the Executive branch, the authority 
to make which is within the competency of the legislative 
branch to confer. Courts will take judicial notice of 
them. (Joseph Wilkins v. United States (1899), 96 
Fed. Rep., 837; Vol. 2, Treas. Dec., No. 21623.) 

Such power delegated to the Commissioner, with ap¬ 
proval of the Secretary, involves no unconstitutional 
delegation of power (1897). (In re Kollock, 165 U. S., 
526, 43 Int. Rev. Rec., 170; Prather v. United States, 9 
Appeal Cases, D. C., 82.) 

Taxes imposed hy the oleomargarine law as amended. 

SPECIAL TAXES. 


Manufacturers of oleomargarine-$600 

Wholesale dealers in oleomargarine colored artificially to 

look like butter_ 480 

Wholesale dealers in oleomargarine not artificially colored 

only_ 200 

Retail dealers in oleomargarine colored artificially to look 

like butter_ 48 

Retail dealers in oleomargarine not artificially colored only__ 6 

Manufacturers of adulterated butter- 600 

Wholesale dealers in adulterated butter- 480 

Retail dealers in adulterated butter- 48 

Manufacturers of process or renovated butter- r - 50 


TAXES ON PRODUCT. 

Oleomargarine (artificially colored), 10 cents per pound. 
Oleomargarine (not artificially colored), i cent per pound. 
Adulterated butter, 10 cents per pound. 

Process or renovated, butter, i cent per pound. 
6153—07—2 



















































































































































Regulations*, NTo. t>. 


REVISED REGULATIONS 

' UNDER 

AN ACT ENTITLED “AN ACT DEFINING BUTTER, ALSO 
IMPOSING A TAX UPON AND REGULATING THE MANU¬ 
FACTURE, SALE, IMPORTATION, AND EXPORTATION OF 
OLEOMARGARINE,” APPROVED AUGUST 2, 1886, AND “AN 
ACT TO REDUCE THE REVENUE AND EQUALIZE DUTIES ON 
IMPORTS, AND FOR OTHER PURPOSES,” APPROVED OCTO¬ 
BER 1, 1890, AND THE ACT TO CHANGE THE TAX ON OLEO¬ 
MARGARINE AND TO IMPOSE A TAX ON ADULTERATED 
BUTTER AND PROCESS OR RENOVATED BUTTER, APPROVED 
MAY 9, 1902. 

Treasury Department, 

Office of Commissioner of Internal Revenue,' 

T V ashing ton, July , 1907. 

Section 20 of the act of August 2, 1886, above referred 
to, provides— 

That the Commissioner of Internal Revenue, with the for 

approval of the Secretary of the Treasury, may make all 
needful regulations for the carrying into effect of this act. 

In pursuance thereof the following regulations have 
been made by the Commissioner of Internal Revenue, 
with approval of the Secretary of the Treasury, and are 
hereby promulgated: 

General Regulations for the Collection of all Taxes 
and Penalties Imposed by the Acts of August 2, 

1886, and May 9, 1902, Prescribed under Authority 
Conferred by Section 20, Act of August 2, 1886, 

Section 4 of the Act of May 9, 1902, and Section 
3447 R. S. 

It shall be the duty of every collector of internal reve¬ 
nue to report within ten days to the district attorney of 
the district in which any fine, penalty, or forfeiture may 
be incurred for the violation of these acts a statement of 
all the facts and circumstances of the case within his 

(19) 



20 


knowledge, together with the names of the witnesses, and 
which may come to his knowledge from time to time, 
stating the provision of the law believed to be violated 
and on which a reliance may be had for condemnation or 
conviction. 

It shall be the duty of any person, partnership, firm, 
association, or corporation engaged in or intending to 
engage in the manufacture of oleomargarine or adul¬ 
terated butter or process or renovated butter or in the sale 
of oleomargarine or adulterated butter, either at whole¬ 
sale or retail, to give notice to the collector of the district 
in which said business is carried on or is intended to be 
carried on, on or before the 1st day of July of each year, or 
within the calendar month in wdiich such business is com¬ 
menced, and shall pay to the collector the tax required by 
this law: Provided , That if any person liable to pay this 
tax shall fail to make the return herein required, then the 
collector or deputy collector may make such return, which, 
being read to and verified by the oath or affirmation of the 
person so engaged in said business or having the care 
and management of such business, may be received as the 
return of such person. And in case such return has not 
been rendered by the person herein described according 
to these requirements, and he shall be absent from his 
residence or place of business at the time the collector or 
deputy collector shall call for said return, it shall be the 
duty of such collector or deputy collector to leave at 
such place of residence or business, with some one of suit¬ 
able age and discretion, if such be present, otherwise to 
deposit in the nearest post-office a note or memorandum 
addressed to such person, requiring him to render to such 
collector or deputy collector the return required, within 
ten days from the date of such note or memorandum, the 
return to be verified by oath or affirmation as aforesaid. 
And if any person on being notified or required as afore¬ 
said shall refuse or neglect to render such return within 
the time required as aforesaid, and if any manufacturer 
of oleomargarine or adulterated butter or process or 
renovated butter shall neglect or refuse to render such 
returns of materials and products as are required by these 
regulations, it shall be the duty of the collector to sum¬ 
mon such person or any other person having possession, 
custody, or care of books of account containing entries 
relating to the business of such person, or any other 
person he may deem proper, to appear before him and 


21 


produce such books, at a time and place named in the 
summons, and to give testimony or answer interrogatories, 
under oath, respecting the object liable to tax, the raw 
materials for the production of the same, or the returns 
required as to either. The collector may summon any 
person residing or found within the State in which his 
district lies; and when the person intended to be sum¬ 
moned does not reside and can not be found within such 
State, the collector may enter any collection district 
where such person may be found, and there make the 
examination herein authorized. And to this end he may 
there exercise all the authority which he might lawfully 
exercise in the district for which he was commissioned. 

Such summons shall in all cases be served by a deputy 
collector of the district where the person to whom it is 
directed may be found, by an. attested copy delivered to 
such person in hand, or left at his last and usual place 
of abode, allowing such person one day for each one hun¬ 
dred miles he may be required to travel, computed from 
the place of service to the place of examination; and the 
certificate of service signed by such deputy shall be evi¬ 
dence of the facts it states on the hearing of an applica¬ 
tion for an attachment. When the summons requires the 
production of books, it shall be sufficient if such books 
are described with reasonable certainty. 

Whenever any person summoned as herein provided 
neglects or refuses to obey such summons, or to give testi¬ 
mony, or to answer interrogatories as required, the col¬ 
lector may apply to the judge of the district court or to a 
commissioner of the circuit court of the United States for 
the district within which the person so summoned resides 
for an attachment against him as for a contempt. In 
carrying this regulation into effect collectors will follow 
the line of procedure as detailed in section 3175, U. S. 
Revised Statutes. 

Whenever any person, corporation, company, or asso¬ 
ciation engaged in the manufacture or sale of oleomarga¬ 
rine or adulterated butter or process or renovated butter 
refuses or neglects to render any return required by the 
oleomargarine act as amended or by these regulations, or 
renders a false or fraudulent return, the collector or any 
deputy collector shall make, according to the best infor¬ 
mation which he can obtain, including that derived from 
the evidence elecited by the examination of the collector, 
and on his own view and information, such return accord- 


22 


ing to the form prescribed of the matters and things con¬ 
tained within said form; and the Commissioner of In¬ 
ternal Revenue shall assess all taxes found upon the filing 
of said return to be due, and such assessment shall be held 
prima facie evidence in actions for the recovery of such 
taxes. 

Any collector, deputy collector, or revenue agent may 
enter, in the daytime, any building or place where any 
articles or objects subject to tax under the law are made, 
produced, or kept, within his district, so far as it may 
be necessary, for the purpose of examining said articles 
or objects or the raw materials for the manufacture 
thereof, or of ascertaining the method of business of the 
person occupying and using said building or premises. 
And when such building or premises are open at night, 
such officers may enter them while so open in the per¬ 
formance of their official duties as herein provided. 

The collector shall in person or by deputy, within ten 
days after receiving any list of taxes arising under the 
oleomargarine act from the Commissioner of Internal 
Revenue, give notice to each person liable to pay any 
taxes stated therein, to be left at his dwelling or usual 
place of business, or to be sent by mail, stating the 
amount of such taxes and demanding payment thereof. 
If such person does not pay the taxes within ten days 
after the service or the sending by mail of such notice, it 
shall be the duty of the collector or his deputy to collect 
the said taxes and to report the facts in such case to the 
district attorney for prosecution under section four of the 
act of August 2, 1886, as amended. 

Whenever any property which is seized under the 
provisions of the law or of these regulations, whatever 
may be the value thereof, is liable to perish or to become 
greatly reduced in price or value by keeping, or when 
it can not be kept without great expense, the owner 
thereof may apply to the collector to examine it; and 
if in the opinion of the said collector it shall be neces¬ 
sary that the property should be sold to prevent such 
waste or expense, he shall appraise the same; and there¬ 
upon the owner shall have said property returned to him 
upon giving bond in such form as may be prescribed by 
the Commissioner of Internal Revenue, and in an amount 
equal to the appraised value, with such sureties as the 
collector shall deem good and sufficient, to abide the final 
order, decree, or judgment of the court having cognizance 


23 


of the case, and to pay the amount of said appraised value 
to the collector, as he may be ordered and directed by the 
court, which bond shall be filed by said collector with the 
United States district attorney for the district in which 
said proceedings in rem may be commenced. But if said 
owner shall refuse or neglect to give said bond, and if the 
collector at any time having property as aforesaid under 
seizure shall consider it necessary to sell the same in order 
to prevent waste or expense as aforesaid, the collector 
shall issue to a deputy collector an order to sell the same; 
and the deputy collector shall thereupon advertise and 
sell the said property at public auction in the same man¬ 
ner as goods may be sold on final execution in said dis¬ 
trict; and the proceeds of the sale, after deducting the 
reasonable costs of the seizure and sale, shall be paid to 
the court aforesaid, to abide its final order, decree, or 
judgment. 

If any collector, deputy collector, or revenue agent 
shall have reason to believe that a fraud upon the revenue 
has been or is being committed through a violation of 
the act' of August 2, 1886, $s amended by act of May 9, 

1902, or of these regulations, upon any premises which 
he believes or has reason to believe is being used for the 
purpose of the manufacture or sale of oleomargarine or 
adulterated butter or process or renovated butter, he 
shall make oath in writing of such belief and may there¬ 
upon apply to any .judge of the circuit or district court 
of the United States, or any commissioner of the circuit 
court within that jurisdiction, for a search warrant 
authorizing a search to be made of the premises described. 

OLEOMARGARINE DEFINED. 

Butter is defined in section 1 of the act, and oleomar¬ 
garine, which is the special subject of these regulations, 
in section 2 thereof, as follows: 

That for the purpose of this act the word “ butter ” fij ^« 11 e r de 
shall be understood to mean the food product usually 
known as butter, and which is made exclusively from 
milk or cream, or both, with or without common salt, and 
with or without additional coloring matter. 

Sec. 2. That for the purposes of this act certain manu¬ 
factured substances, certain extracts, and certain mix- ri Je e deflned sa 
tures and compounds, including such mixtures and com¬ 
pounds with butter, shall be known and designated as 
;; oleomargarine,” namely: All substances heretofore 
known as oleomargarine, oleo, oleomargarine-oil, butter- 


24 


Extract from 
Attorney - Gen¬ 
eral’s opinion. 


Coloring 
matter in but¬ 
ter. 


ine, lardine, suine, and neutral; all mixtures and com¬ 
pounds of oleomargarine, oleo, oleomargarine.-oil, butter- 
ine, lardine, suine, and neutral;. all lard extracts and 
tallow extracts; and all mixtures and compounds of tal¬ 
low, beef-fat, suet, lard, lard-oil, vegetable-oil, annotto, 
and other coloring matter, intestinal fat, and offal fat 
made in imitation or semblance of butter, or when so 
made, calculated or intended to be sold as butter or for 
butter. 

The Attorney-General of the United States rendered an 
opinion, under date of October 18, 1886, to the effect that 
the last clause of section 2 of the act of August 2, 1886, 
should be construed as qualifying all the preceding por¬ 
tion of said section. 

He says: “ In my opinion, the qualification extends to 
the whole section, and is an essential element of the statu¬ 
tory definition of oleomargarine.” 

In deference to the above opinion, said section is con¬ 
strued as though it read as follows: 

That for the purposes of this act certain manufactured 
substances, certain extracts, and certain mixtures and 
compounds, including such mixtures and compounds with 
butter, shall be known and designated as “ oleomarga¬ 
rine ” whenever made in imitation or semblance of butter, 
or, when so made, calculated or intended to be sold as 
butter or for butter, namely: All substances heretofore 
known as oleomargarine, oleo, oleomargarine oil, butter- 
ine, lardine, suine, and neutral; all mixtures and com¬ 
pounds of oleomargarine, oleo, oleomargarine oil, butter- 
ine, lardine, suine, and neutral; all lard extracts and 
tallow extracts, and all mixtures and compounds of tal¬ 
low, beef fat, suet, lard, lard oil, vegetable oil, annotto, 
and other coloring matter, intestinal fat, and offal fat. 

The mixture of butter with coloring matter does not, 
under this law, render it liable to tax as oleomargarine, 
such mixture being permitted under the definition given 
in the first section. If, however, the annotto or other 
coloring matter is mixed with a vegetable oil or an animal 
fat other than butter fat as a mordant, resulting in a com¬ 
pound resembling butter, this compound would be liable 
to tax of 10 cents per pound as oleomargarine artificially 
colored when manufactured and sold or removed. 

It has been urged that the quantity so added would be 
minute, and that a portion at least would also be lost in 
the buttermilk, etc. A number of samples known to have 
been colored with a butter color, in which oil was used as 
a mordant, have been examined in this office without re¬ 
sulting in the discovery of any, foreign fat or oil. 


25 


Under the circumstances, collectors are advised, before Samples to be 

7 7 submitted for 

levying the oleomargarine tax upon butter so colored, to inspection, 
submit a sample for the inspection of this office, provided 
the coloring matter in the suspected butter is the only 
ground for the belief that it is oleomargarine. 

Treasury Decision No. 277, February 12, 1901, holds in h K? e ’ t o U tax ot 
effect that a fat called “ Ko-nut,” composed entirely of 
cocoanut oil, is not liable to tax as oleomargarine. 

Treasury Decision No. 344, Mav 11, 1901, holds that Cocoanut oil 
cocoanut oil and other ingredients containing no butter, tax. 
and which has not been churned with milk or cream, is 
not taxable as oleomargarine. 


MANUFACTURERS. 


Manufac¬ 
turers’ special 
tax. 


Manufac¬ 
turer defined. 


When taxes 
are due. 


SPECIAL TAXES. 

Section 3 of the act of August 2, 1886, as amended by 
the act of May 9, 1902, jDrovides as follows: 

Manufacturers of oleomargarine shall pay six hundred 
dollars. Every person who manufactures oleomargarine 
for sale shall be deemed a manufacturer of oleomarga¬ 
rine. 

And any 'person that sells , vends , or furnishes oleo¬ 
margarine for the use and consumption of others , except 
to his own family table without compensation , who shall 
add to or mix with such oleomargarine any artificial 
coloration that causes it to look like butter of any shade 
of yellow shall also be held to be a manufacturer of oleo¬ 
margarine within the meaning of said act , and subject 
to the provisions thereof. 

* * * And sections thirty-two hundred and thirty- 

two, thirty-two hundred and thirty-three, thirty-two hun¬ 
dred and thirty-four, thirty-two hundred and thirty-five, 
thirty-two hundred and thirty-six, thirty-two hundred 
and thirty-seven, thirty-two hundred and thirty-eight, 
thirty-two hundred and thirty-nine, thirty-two hundred 
and forty, thirty-two hundred and forty-one, and thirty- 
two hundred and forty-three of the Revised Statutes of 
the United States are, so far as applicable, made to extend 
to and include and apply to the special taxes imposed by 
this section, and to the persons upon whom they are im¬ 
posed. 

Section 53 of the act of October 1,1890: 

That all special taxes shall become due on the first day 
of July, eighteen hundred and ninety-one, and on the first 
day of July in each year thereafter, or on commencing 
any trade or business on which such tax is imposed. In 
the former case the tax shall be reckoned for one year; 
and in the latter case it shall be reckoned proportionately, 
from the first day in the month in which the liability to 
a special tax commenced to the first day of July follow¬ 
ing. * .* * And it shall be the duty of special tax 

payers to render their returns to the deputy collector at 
such times within the calendar month in which the special 
tax liability commenced as shall enable him to receive 
such returns, duly signed and verified, not later than the 
last day of the month, except in cases of sickness or 
absence, as provided for in section three thousand one 
hundred and seventy-six of the Revised Statutes. 

( 26 ) 


27 


Under the provisions of the above section the special-, Tax 7 ear < 

A . 1 how reckoned. 

tax year commences July 1. The special tax of manufac¬ 
turers who commence business in the month of July will 
be reckoned for one year, and the tax of manufacturers 
who commence business after the month of July will be 
reckoned proportionately from the 1st day of the month 
in which the liability to special tax commenced to the 1st 
day of July following. 

Under the provisions of the amendment to section 3, Liability to 
act of August 2, 1886, by the act of May 9, 1902, liability fa?tu?Ir S manu ' 
as manufacturer of oleomargarine is incurred by any 
person that sells, vends, or furnishes oleomargarine for 
the use and consumption of others, except to his own 
family table without compensation, who shall add to or 
mix with such oleomargarine any artificial coloration that 
causes it to look like butter of any shade of yellow, and 
such persons are subject to the provisions of the law re¬ 
lating to manufacturers of oleomargarine, must make the 
return, pay the special tax, keep the books, and make the 
reports and returns required of manufacturers of oleo¬ 
margarine. 

To emphasize the meaning of the exception contained 
in section 2 of the act of May 9, 1902, the wording might 
be transposed as follows: 

Any person that sells, vends, or furnishes oleomarga- Exception, 
rine for the use and consumption of others who shall add 
to or mix with such oleomargarine any artificial colora¬ 
tion that causes it to look like butter of any shade of yel¬ 
low shall be held to be a manufacturer of oleomargarine 
within the meaning of this act, and subject to the provi¬ 
sions thereof, except when he furnishes it for the use of 
his own family table without compensation. 


In this connection it may be said that a family consists fin ^ mily de ‘ 
of father, mother, children, servants, and invited guests 
who are entertained without charge, and is confined to 
those for whose support the law ordinarily requires the 
head of a family to provide and those who are guests at 
the family table. 

The head of a family is in control of the same, and it is 
his duty to support it. 

A hotel keeper might domicile his family in his hotel 
and subsist it at the table; but the guests of his hotel can 
not be deemed a part of his domestic family. 

The head of an asylum, hospital, soldiers’ home, or 
other public institution does not control or support the 
inmates in the sense of a head of a family. 


28 


Dealers who 
color oleomar¬ 
garine liable to 
tax as manu¬ 
facturers. 


Seizure and 
forfeiture. 


Artificial col¬ 
oration. 


The law permits a private individual to color oleomar¬ 
garine not artifically colored without liability as manu¬ 
facturer if said oleomargarine is furnished to his own 
family table without compensation. This was intended 
as a peculiar benefit or advantage of a special exemption 
from a burden falling upon others, and the word 
“ family ” qualifying “ table ” must be dealt with in its 
restricted sense in the execution of this section of the law. 

Dealers in oleomargarine who add to or mix with the 
oleomargarine sold by them artificial coloration that 
causes it to look like butter of any shade of yellow are 
held to be manufacturers of oleomargarine and required 
to pay special tax as such. 

Any artificially colored oleomargarine found on the 
market in packages bearing tax-paid stamps at the rate 
of one-fourth of 1 cent per pound is liable to seizure and 
forfeiture. 

ARTIFICIAL COLORATION. 

Section 8 of the act of May 9, 1902, fixes the rate of 
tax on oleomargarine at 10 cents per pound, but provides 
that when the product is free from artificial coloration 
that causes it to look like butter of any shade of yellow 
the tax shall be at the rate of one-fourth cent per pound. 

The materials most commonly used in the manufacture 
of oleomargarine are enumerated in section 2 of act of 
August 2, 1886, but this is not regarded as excluding or 
prohibiting the use of other materials not included among 
those thus designated. However, when an ingredient is 
used ostensibly as a necessary component part of the 
product, but in fact in minute quantities, for the sole pur¬ 
pose of imparting a shade of yellow, causing the oleo¬ 
margarine to look like butter, it is held that such product 
is artifically colored and subject to tax at the rate of 10 
cents per pound. 

If a material is used as a bona fide constituent part of 
the manufactured article, and such material does not itself 
contain artificial coloring matter, its use would not be 
regarded as producing an artificial coloration, although 
the finished product should present a shade of yellow 
caused by the incorporation of such unartificially colored 
ingredient. 

On the other hand, if any of the ingredients entering 
into the composition of oleomargarine contains artificial 
coloring matter, and the resulting product looks like but- 


29 


ter of any shade of yellow, such product is held to be 
artificially colored and taxable at the higher rate. 

Any oleomargarine having a color that causes it to look 
like butter of any shade of yellow, which color is pro¬ 
duced by the introduction of so-called butter color or any 
other artificial coloration, is taxable at the rate of 10 
cents per pound. 

When oleomargarine is free from artificial coloration 
that causes it to look like butter of any shade of yellow, 
it is taxable at the rate of one-fourth cent per pound. 

McCray v. United States, U. S. Supreme Court, T. D. 

No. 795, dated June 4, 1904. 

Cliff v. United States, U. S. Supreme Court, T. D. 

No. 839, dated October 28, 1904. 

Moxley v. Hertz, U. S. circuit court, northern district 
Illinois, T. I). No. 1168, dated May 14, 1907. 

Every manufacturer of oleomargarine, before com- tu ^a n uf ac- 
mencing business (or at least within the month in which ! ste J with coi: 

x . lector. 

liability to the special tax commenced), must register 
with the collector of the district in which the business is 
to be carried on the name, or style, place of residence, 
business, and the place where such business is to be car¬ 
ried on and procure a special-tax stamp, which latter he 
is to place and keep conspicuously posted in his establish¬ 
ment or place of business, and on the 1st day of July in 
each year he will again so register and procure a new 
special-tax stamp and post it as above stated. (Secs. 

3233 and 3239, R. S.) 

Section 4 of the act of August 2, 1886, imposes fines 
upon those who do any business rendering them liable to 
special tax as manufacturers under the law without pay¬ 
ing the special tax, as follows: 

That every person who carries on the business of a Fines - 
manufacturer of oleomargarine without having paid the 
special tax therefor, as required by law, shall, besides 
being liable to the payment of the tax, be fined not less 
than one thousand and not more than five thousand dol¬ 
lars. 

The question having arisen as to whether manufac- ma s r t ° { [’ i l^ e ° 1 ^ 
turers of oleomargarine may store tax-paid packages of mote e from e fac 
that product in warehouses away from the factory, and tor y- 
deliver them from such warehouses after completion of 
the sale thereof at the factory without paying additional 
special tax as w T holesale dealers by reason of deliveries 
from such warehouses, it is held that such procedure is 


30 


Kale of pack¬ 
age at the fac¬ 
tory. 


Manufac¬ 
turers’ notices, 
inventories, 
and bonds, etc. 


permissible. But in every instance it must be clear that 
the sale has been completed at the factory by constructive 
delivery there prior to the actual delivery at the place of 
storage. 

Receipt of an order at the factory and the sending of 
such order from the factory to the storehouse for delivery 
is not a sale of the package at the factory. In order to 
complete the sale at the factory, the manufacturer must 
not merely receive the order at the factory, but he must 
make out and there deliver to the customer ordering, or 
send to him direct from the factory, a bill of sale, in each 
instance, transferring to him the ownership of the pack¬ 
age before there is any actual delivery of the package at 
the place of storage. 

Treas. Dec. 499. 

SPECIAL TAX-OLEOMARGARINE. 

Where a manufacturer or wholesale dealer in oleomargarine 
receives an order from a purchaser for original stamped packages 
of oleomargarine in “ 1,000-pound lots,” the packages must be set 
apart at the factory or at the place of business of the wholesale 
dealer and shipped in such a manner as to entitle the purchaser 
to the ownership and receipt of the packages as his own property 
absolutely and unconditionally. If this is not done, and the agent 
of the manufacturer or wholesale dealer upon the arrival of the 
packages at their destination withholds them, or any part of them, 
from the purchaser until the latter pays for them and only then 
makes delivery, the sales are to be regarded as completed at the 
place of such delivery, and special tax is required to be paid there¬ 
for at that place. 

NOTICES, INVENTORIES, AND BONDS, ALSO FACTORY NUMBERS 
AND SIGNS. 

Section 5 provides— 

That every manufacturer of oleomargarine shall file 
with the collector of internal revenue of the district in 
which his manufactory is located such notices, inventories, 
and bonds, shall keep such books and render such returns 
of material and products, shall put up such signs and affix 
such number to his factory, and conduct his business 
under such surveillance of officers and agents as the Com¬ 
missioner of Internal Revenue, with the approval of the 
Secretary of the Treasury, may, by regulation, require. 
But the bond required of such manufacturer shall be with 
sureties satisfactory to the collector of internal revenue, 
and in a penal sum of not less than five thousand dollars; 
and the sum of said bond may be increased from time to 
time, and additional sureties required at the discretion of 
the collector, or under instructions of the Commissioner 
of Internal Revenue, 


31 


Under the above provision of law every manufacturer 
of oleomargarine, before commencing business, must file 
with the collector of the district in which his factory is 
located a bond in an amount, to be fixed by the collector, 
of not less than five thousand dollars, with two or more 
sureties satisfactory to him, on Form 214. A notice in 
duplicate on Form 213 (see instructions, p. 32) and inven¬ 
tories on Form 215 (see p. 35) are also required. 

The form of notice is as follows: 


Form 213—Revised. 


Manufac¬ 
turer’s notice. 


UNITED STATES INTERNAL REVENUE. 


Notice by Manufacturer of Oleomargarine . 

-, 190—. 

Notice is hereby given that-—-of the- 

of-, county of-and State of-t—, intend, 

under the name or style of-, to carry on or 

engage in the business of manufacturer- of oleomarga¬ 
rine, on and after the-day of -, 190—, in the 

building owned by - -, situate No. - 

street, in the - of - county of - and 

State of -, and that the following machinery and 

appliances will be used in the manufacture of oleomarga¬ 
rine: -. 

General description and size of the lot or tract of land 
on which the oleomargarine factory is located: -. 

General description of all buildings on the factory 
premises: 


Purpose for which used. 

Size. 

Material of which constructed. 





Total capacity in pounds for producing oleomargarine 

each day of 24 hours,- 

(Signed) -. 


Collector ,- district ,- ; -. 

Received this-day of-, A. D. 190 —. 

-, Collector. 

Date of bond last given,-, 190—. 

Penal sum of same, $— -. 

Note. —The particular room or rooms (if an entire building is 
not used) in which the manufacture of oleomargarine is to be 
carried on must be described, and the same premises can not be 



































32 


Instruct ions 
concerning no¬ 
tice. 




Manufac¬ 
turer's bond. 


t 


used for the manufacture of adulterated butter, process or reno¬ 
vated butter. Collectors will not approve the bond of a manu¬ 
facturer of oleomargarine whose premises are not entirely sepa¬ 
rated by solid walls or partitions from any room or place used for 
the manufacture of adulterated, process or renovated butter, or 
for the handling or manipulation of butter not taxable under the 
act of May 9, 1902. 

INSTRUCTIONS. 

This notice must be given in duplicate to the collector of the dis¬ 
trict by each person or firm before engaging in the business of 
manufacturing oleomargarine, and on the 1st day of July thereafter 
by those continuing in the business. 

One copy of the notice will be filed in the collector's office and 
the other forwarded to the Commissioner of Internal Revenue. 

The signature to the notice, when given by an individual, must 
in all cases be made by the manufacturer in person, or in his 
name by his authorized agent or attorney. If signed by agent or 
attorney, authority to so sign must be attached. 

In case of a firm the signature must be made in the firm name 
by a member of the firm, or by some person duly authorized as 
above. 

In case of a corporation the signature must be made, in the 
name and under the seal of the corporation, by the proper officer 
thereof. 

Collectors will note in the space herein provided the date and 
penal sum of the last bond of the person, firm, or corporation 
giving this notice, if one has been theretofore given. 

In case of any change in the location, form, capacity, ownership, 
agency, superintendency, or in the persons interested in the busi¬ 
ness of such manufactory, notice thereof, in writing, stating the 
particulars of such change, must be given to the collector of the 
district within twenty-four hours of such change. 

The form of the manufacturer’s bond is .as follows : 

Form 214 —Revised August, 1903. 

UNITED STATES INTERNAL REVENUE. 

Oleomargarine Manufacturer's Bond. 

(Section 5, act of August 2, 1886 .) 

This bond must be executed by every manufacturer before com¬ 
mencing business, and should be accompanied by affidavits of 
sureties on Form 33, unless the surety thereon be a guarantee or 
surety company, when Form 400 will be used. 

The original of this bond must be filed in the collector's office, 
and copy sent to the Commissioner of Internal Revenue by the 
collector. 

Know all men by these presents, that we,-, 

as principal-, and — : -, as sureties, are held and 

firmly bound unto the United States of America in the 

sum of-dollars, lawful money of the United States, 

for the payment of which, well and truly to be made, we, 
jointly and severally, bind ourselves, our heirs, executors, 
and administrators, by these presents. 

Witness our hands and seals, at--—. this-day of 

-—, nineteen hundred and-. 

The condition of this t obligation is such that whereas 
the said ——-propose- to carry on or engage in 












33 


the business of the manufacture of oleomargarine at No. 

-street or avenue, in the city of-, in the county 

of-, and State of-. 

Now, therefore, if the said--shall comply 

with all the requirements of law and regulations in regard 
to the manufacture, removal, and sale of oleomargarine, 
and shall not engage in any attempt, by —sel— or by 
collusion with others to defraud the Government of any 
tax on -h- manufactures, and shall render truly and cor¬ 
rectly all the returns and inventories prescribed to the 
collector of the district, and shall, in accordance with law, 
stamp, mark, brand, and affix caution notices to all oleo¬ 
margarine manufactured by -h- before -he- sell- the 
same, or any part thereof, and before —he— remove— any 
part thereof from the place of manufacture for consump¬ 
tion or use, and shall not knowingly sell or expose for sale 
any oleomargarine not marked, stamped, and branded, as 
required by law, then this obligation is to be void; other¬ 
wise to be in full force and virtue. 

—-*—. [l. s.] 

-. [L.S.] 

-. [L. S.] 

Signed, sealed, and delivered in the presence of— 


State of 



I hereby certify that on this- day of-, one 

thousand nine hundred and-, before me personally 

came-, known to me to be the individuals 

described in and who executed the within bond, and sev¬ 
erally acknowledged that they executed the same. 


The following instructions must be particularly com¬ 
plied with, viz : 

1. The Christian names must be written in the body of the bond instructions 
in full, and so signed to the bond, and the execution of the bond^ on ^ e r n 1 n g 
must be duly acknowledged by each of the signers before an offi- on 

cer authorized to take the acknowledgment of deeds. 

2. Bonds of corporations must be signed with the corporate name, 
with the corporate seal attached, and with the name and title of 
the officer authorized to affix the corporate signature and seal. 

3. The residence of each signer must be stated in the bond. 

4. A seal of w r ax or wafer must be attached to each signature. 

5. Each signature must be made in the presence of two wit¬ 
nesses, who must sign their names as such. 

6. There must be at least two sureties except when a corpora¬ 
tion duly authorized by the Attorney-General of the United States 
is offered as a sole surety; and the bond must be dated. 

7. The sufficiency of the sureties must be shown by affidavits 

6153—07-3 

























34 


made on Form 33, unless the surety thereon be a guarantee or 
surety company, when Form 400 will be used. 

8. A new bond must be required in the case of the death, insol¬ 
vency, or removal of either of the sureties, and may be required in 
any other contingency, at the discretion of the collector or Com¬ 
missioner of Internal Revenue. 

9. Bonds of corporations must be accompanied by certified copies 
of the articles of incorporation, unless such copies have been pre¬ 
viously filed in the office of the Commissioner of Internal Revenue. 

10. Collectors must not approve bonds of manufacturers of oleo¬ 
margarine unless the notice (Form 213) definitely describes the 
room or rooms (or entire building, if so used) in which the busi¬ 
ness of manufacturer is to be carried on, nor if the premises so 
described are used or to be used for the manufacture of adulter¬ 
ated, process or renovated butter, or for the handling or manipu¬ 
lation of butter not taxable under the act of August 2, 1886, as 
amended by the act of May 9, 1902. 

The form of affidavit of sureties, which should accom¬ 
pany the above bond, is as follows: 

Form 33—Revised. 


UNITED STATES INTERNAL REVENUE. 


[This form of qualification is to be used in connection with the 
execution of all bonds taken by collectors when they are not 
personally cognizant of the sufficiency of the sureties, except in 
case of surety companies, when Form 400 will be used.] 


Affidavit for 
surety on bond 
of manufac¬ 
turer. 


Form of Affidavit for Surety on Bond. 


State of - 

County of 


Personally appeared - -, who, being duly 

sworn, sa}^s that he is one of the sureties mentioned in the 

annexed bond of 1 -; that he is by occupation 

a -, for - months last past doing business at 

-, in-, and residing at-, in-; that 

he is now worth the sum of 1 - - dollars 

($- ooo), over and above all debts and liabilities 

which he owes or has incurred, exclusive of property 
exempt from execution and under the homestead laws of 

the State; that he owns personal property worth f-- 

- dollars ($-roir)} consisting of ( 1 ) - 

-, and real estate worth 2 -dol¬ 
lars ($- 500)5 described as follows: ( 2 ) - 

-; that the same has the following incum¬ 
brances thereon, and none other, to wit: (3) - 

-; that his title to the same is a fee simple, 

and that he became possessed of said real property by 



1 State here the name of the principal and the character of the 
bond. 

a State the amount in words as well as figures. 





































35 


(4) - - from -, on the - clay of 

-, 190—. That he is not responsible to the United 

States as surety on any other bond except (5) - 


(Sign)-. 

Sworn and subscribed before me (6) this-day of 

-, A. D. 190—; and I hereby certify that I believe 

the above-named - - is the identical person 

who subscribed the annexed bond as one of the sureties 
therein. 

(1) Here describe the property by name, so that it can be identi¬ 
fied—as “ Fifteen shares of stock of the Fourth National Bank, of 
New York City.” 

(2) Here describe the property by giving the number of the lot 
and square, if in a city, and by metes and bounds, if in the 
country, that it may be identified. 

(3) The character of the incumbrance or incumbrances, if any, 
should be set forth, and if the real estate is free from incumbrance 
that fact should be stated. 

(4) Purchase, inheritance, or devise. 

(5) Here state what other bonds to the United States deponent 
has already signed as security, giving name and principal, date, 
amount, and character of bond. If none, erase the word “ except.” 

(6) Where the affidavit is not taken before a collector or deputy 
collector of internal revenue it must be made before an officer 
authorized to administer oaths generally. If such officer is not a 
judge of a United States court, his authority to administer oaths 
must be certified by the clerk of a court of record having official 
knowledge of that fact. 

Note. —In case the bond is forwarded to the Commissioner of 
Internal Revenue, it should be accompanied by an affidavit of each 
surety on this form. 

Every manufacturer of oleomargarine before commenc¬ 
ing business must file with the collector of the district in 
which his factory is located an inventory in duplicate on 
Form 215, and thereafter on the 1st day of July when 
continuing business. 

A similar inventory must also be filed by every manu¬ 
facturer upon discontinuing business, to be plainly 
marked “ Closing inventory.” 

Form 215— Revised. 


UNITED STATES INTERNAL REVENUE. 

Oleomargarine Manufacturer’s Inventory . 

Inventory of the quantity of all materials that enter 
into the manufacture of oleomargarine, including all ma¬ 
terials used in process of manufacture, and all finished 

products held or owned by - -, of - 

-, county of-, State of-, whose factory 





















36 


Facto 

number. 


is numbered-, and is located at-> cm 

the-day of-, 190—. 




Manufactured oleomargarine. 




Pounds of mate¬ 
rial. 

Unstamped. 

Stamped. 

Value of un¬ 
attached stamps 
on hand. 

material. 

Num¬ 
ber of 
pack¬ 
ages. 

Num¬ 
ber of 
pounds. 

Num¬ 
ber of 
pack¬ 
ages. 

Num¬ 
ber of 
pounds. 







Dollars. 

Cents. 


(Signed)-. 

I,-, do swear that the above is, to the best 

of my knowledge and belief, a complete and correct ac¬ 
count of all the materials that enter into the manufacture 
of oleomargarine, including all materials in process of 
manufacture, all finished products, and all other mate¬ 
rials held or owned by-, on the - day 

of ———, 190—, and that I have taken all the means in 
my power to make this account complete and correct in 
each and every particular. 

(Signed)-. 

Subscribed and sworn before me this-day of-, 

19.0—. 


I,-, do swear that I have made personal 

examination of the stock of-, and that, to 

the best of my knowledge and belief, the above is a cor¬ 
rect inventory of said stock. 


Deputy Collector . 

Subscribed and sworn before me this-day of- 

A. D. 190—. 


Collector. 

r y Collectors will give to each manufacturer in their re¬ 
spective districts a factory number, the numbers to be 
consecutive, and not thereafter changed. 

The factory number applies to the manufacturer and 
his establishment rather than to the building, so that if 
the manufacturer removes to new premises he will retain 
his factory number and transfer it to such new premises. 




































37 


Every manufacturer of oleomargarine shall place and 
keep over the principal entrance to the building wherein 
his business is carried on, so that it can be distinctly seen, 
a sign with letters thereon not less than 3 inches in length, 
painted in oil colors or gilded, giving his full name and 
business and the number of his manufactory, as follows: 


Manufacturer of Oleomargarine, 

Factory No. -. 

If the manufacturer of oleomargarine is also engaged separate fac- 

, „ pit T b b tory for each 

m the manuiacture ox adulterated butter, process or reno- product, 
vated butter, as defined in the act of May 9, 1902, the 
premises of each manufactory must be entirely separate. 

If in the same building, they must be separated from each 
other by solid walls or partitions. The manufacture of 
two or more of these articles on the same premises will 
not be permitted under any circumstances. Neither can 
such premises be used for the handling or manipulation 
of butter not taxed under the act of May 9, 1902. 

manufacturers’ packages, and marks, brands, stamps, 

AND LABELS TO BE AFFIXED THERETO. 

Section 6 of the act provides as follows: 

That all oleomargarine shall be packed by the man- Manufac- 
ufacturer thereof in firkins, tubs, or other wooden pack-ages!Marks’ 
ages not before used for that purpose, each contain- bl ' ands > etc - 
ing not less than ten pounds, and marked, stamped, and 
branded as the Commissioner of Internal Revenue, with 
the approval of the Secretary of the Treasury, shall pre¬ 
scribe; and all sales made by manufacturers of oleomar¬ 
garine- and wholesale dealers in oleomargarine shall be in 
original stamped packages. Retail dealers in oleomarga¬ 
rine must sell only from original stamped packages, in 
quantities not exceeding ten pounds, and shall pack the 
oleomargarine sold by them in suitable wooden or paper 
packages, which shall be marked and branded as the Com¬ 
missioner of Internal Revenue, with the approval of the 
Secretary of the Treasury, shall prescribe. Every person 
who knowingly sells or offers for sale, or delivers or offers 
to deliver, any oleomargarine in any other form than in 
new wooden or paper packages as above described, or who 
packs in any package any oleomargarine in any manner 
contrary to law, or who falsely brands any package or 
affixes a stamp on any package denoting a less amount of 
tax than that required by law, shall be fined for each 
offense not more than one thousand dollars, and be im¬ 
prisoned not more than two years. 




38 


Packages not 
used before. 


Size of pack¬ 
age. 


Restrictions 
as to bricks, 
prints, rolls, 
etc. 


Wrappers. 


Embell ish - 
ment for bricks, 
etc. 


Device for 
wrapper. 


Under the provisions of section 0, above quoted, all 
oleomargarine for domestic use shall be packed by the 
manufacturers thereof in firkins, tubs, or other wooden 
packages not before used for that purpose. 

The same section requires that no statutory package 
shall contain less than 10 pounds, and an}^ manufacturer 
who packs in such package a less quantity is liable to the 
penalty provided in this section. 

The law does not fix the maximum size of manufac¬ 
turers’ packages. 

Manufacturers are permitted to pack prints, bricks, 
and rolls of oleomargarine in statutory packages, subject 
to the following restrictions: 

I. No device or brand shall be imprinted upon any 
brick, print, or roll of oleomargarine packed in any statu¬ 
tory package unless the word “ Oleomargarine ” is also 
impressed thereon in letters equal in size to those used in 
expressing any brand or word used by the manufacturer. 
When no display is made except a device, then the word 
“ Oleomargarine ” shall be impressed on such brick, print, 
or roll in letters not less than one-fourth of an inch 
square, and in all cases the word “ Oleomargarine ” shall 
be equally displayed with any brand or word used by the 
manufacturer, in close proximity thereto, and on the same 
surface of such brick, print, or roll. 

II. The same rule shall be observed where any device 
or brand is used upon the wrapper covering any brick, 
print, or roll of oleomargarine. 

III. Manufacturers will be permitted to impress upon 
their rolls, prints, or bricks marks or embellishments in 
the way of a finish for the same, without the word “ Oleo¬ 
margarine” appearing thereon, provided said marks or 
embellishments are first presented in duplicate photo¬ 
graphic copies, serially numbered, to this office for ap¬ 
proval. The wrappers for these rolls, prints, or bricks 
may be in blank; but if any mark, device, or brand is 
used, the word “ Oleomargarine ” must appear in letters 
one-fourth of an inch square and in close proximity 
thereto and on the same surface of each brick, print, or 
roll. The practice of placing the word “ Oleomargarine ” 
on the wrapper in such position that when around the 
brick, print, or roll the device or brand appears on one 
surface and the word “ Oleomargarine ” on the edge of 
another is not in compliance with these regulations. 


39 


IV. Under no circumstances will any manufacturer or 
dealer be permitted to impress, brand, or mark upon any 
print, brick, or roll of oleomargarine, or on any wrapper 
covering the same, any device, word, or words calculated 
to induce the public to believe that it is a product of the 
dairy, or butter, even though the word u Oleomargarine ” 
appears on the same. 

V. Manufacturers are not permitted to put up oleomar- Subdivision 
garine in wooden, tin, pressed fiber, stone, or other ves- P aSeS 
sels as subdivision packages for domestic use. It is only 

in the case of oleomargarine packed for export that such 
subdivision packages are permitted. 

MI. In case of small packages inclosed in statutory 
packages for export the marks and brands required on 
the inner packages must be placed on the packages proper 
and not upon an outer covering or additional or false top 
or bottom. 

Every package of oleomargarine must, before removal Branding and 
from the manufactory, be branded or stenciled as follows: stencilin& ' 

Ole omargarine . 

Factory No. 1 -, 2 --Dist. 3 * -. 

4 _ 

1 5 

For example: 

Oleomargarine. 

Factory No. 1, First Dist. of Illinois. 

63—13—50. 

The letters and figures in the above brand must be of tei ® ize of let ' 
the following dimensions: The letters in the word “ Oleo¬ 
margarine ” must be not less than three-quarters of an 
inch in length, and all the other letters and figures not 
less than one-half an inch in length. 

All letters and figures affixed must be legible, and must 
be of such width and of such color as the collector of in¬ 
ternal revenue may designate. 

The above brand must be on the top only of each 
package. 

The use by oleomargarine manufacturers, or dealers, of aii marks 

anv private trade-mark, label, brand, picture, illustration, fact that prod- 

J 1 _ 7 y ' ' uc £ j s oleomar- 

or other advertising or descriptive device upon any print, garine prohib- 

1 Here give the number of the manufactory. 

2 Here state the number of the district. 

3 Here give the name of the State. 

5 Here give the gross weight, tare, and taxable weight. 



40 


Use of word 
“ butterine” 
prohibited. 


P r i v a t 
marks. 


Size of let¬ 
ters. 


roll, or other mold or design of oleomargarine offered for 
sale, consumption, or use, or upon any wooden or paper 
package or wrapper of any print, roll, or other mold or 
design of oleomargarine which conceals, or tends to con¬ 
ceal, the fact that the product is oleomargarine, is hereby 
prohibited. 

Under this regulation it will be seen that the use on 
statutory or other packages of oleomargarine of any trade¬ 
mark, label, brand, picture, illustration, or advertising or 
descriptive device indicating the oleomargarine to be a 
product of the dairy, or calculated to induce the belief 
that it is such dairy product, is inadmissible. 

The use of the word 44 butterine ” is also hereby prohib¬ 
ited, since section 2 of the act of August 2, 1886, pre¬ 
scribes that the substance theretofore known as 44 butter¬ 
ine ” shall be known and designated as 44 oleomargarine.” 

If manufacturers of oleomargarine desire to place upon 
the outside of their original wooden package, contem¬ 
plated in section 6 of the act of August 2, 1886, their 
names, or some word or mark descriptive of the quality of 
the product, they may do so, provided they also brand or 
stencil on the package the word 44 oleomargarine ” beneath 
such name, word, or mark, so as to be read as a word in 
association with such name, word, or mark; and, if de¬ 
sired, figures and words may be added indicating the 
form or manner in which the contents are packed, as 
shown in the following illustrations: 


John Doe, 
Manufacturer of 
Oleomargarine. 
50-1-lb. Plain Bricks. 


Richard Roe, 
Manufacturer of Perfection 
Oleomargarine. 

Solid. 


John Doe, Richard Roe, 

Manufacturer of Standard Manufacturer of Crescent 

Oleomargarine. Oleomargarine. 

20-1-lb. Fancy Rolls, Short. 52-1-lb. Rolls, Long. 

Provided , The word 44 oleomargarine ” as used in such 
labels, marks, brands, etc., is branded or stenciled in plain 
roman letters, not less in size than the letters used in the 
manufacturer’s name, with the word describing the brand 
in letters not greater than one-half that size. 

And provided also , The figures and words describing 
the form in which contents are packed be not greater than 
one-half the size of the letters prescribed for the word 
44 oleomargarine.” 


41 


And provided further , The words, figures, marks, etc., br ®gj | er ^j^ t 
hereby allowed in no wise obscure or encroach upon the® tc -» not t0 be 

/-x , , .. . r obscured. 

(government brands, marks, etc., required by these regu¬ 
lations. The employment of any word or mark, by itself, 
or in connection with any name or firm, will not be al¬ 
lowed, and if used will be at the manufacturer’s own risk. 

Such specimen words, marks, etc., as may be submitted 
for consideration of this office should be sent, in dupli¬ 
cate, through the office of the collector of the district in 
which the factory is located. 

In case the package is removed from the factory for ex- Export brand, 
port under the provisions of section 16 of the act of 
August 2, 1886, the words “ Oleomargarine for export ” 
will also be stenciled or branded thereon by the exporter 
in letters not less than three-quarters of an inch in length 
and of such width and color as the collector of internal 
revenue shall approve. This export brand must be placed 
on the side of the package. 

The use of cloth or paper wraps to preserve the form of cloth or pa- 
prints inside of the manufacturer’s packages will be per¬ 
mitted, provided such wraps, taken separately, are not 
safe or suitable for the transportation of oleomargarine, 
and are not packages within the meaning of section 6. 

Manufacturers may put up oleomargarine for export port pack_ 
in wooden, tin, or other vessels containing not less than 
one-half pound each, which must, however, be packed in 
tubs, firkins, or other packages: Provided , The applica¬ 
tion for the withdrawal of the oleomargarine for exporta¬ 
tion fully sets forth the kind and capacity of each such 
vessel, and the number thereof put into each tub, firkin, 
or other manufacturer’s package. And provided , The 
word “ oleomargarine ” is conspicuously marked, branded, 
or stamped on the top or side or end face of each inner 
vessel, in plain roman letters, not less than one-half inch 
square. And provided also , The tubs, firkins, or other 
packages containing the smaller packages be not nailed, 
sealed, or otherwise closed until inspected in the follow¬ 
ing manner by the proper collector of internal revenue 
or his deputy: Before the tub, firkin, or other package is 
nailed, sealed, or otherwise closed for shipment the in¬ 
specting officer must examine to see that it contains the 
number of vessels of the kind and capacity set forth in 
the application for the withdrawal, and if found by him 
to agree with the statements therein he will allow the 
package to be closed, and shall immediately thereafter 


42 


Manufac- 
turer’s label. 


Notice. 


Size of label. 


Label. 


How label 
shall be affixed. 


Tax paid by 
manufacturer. 


place thereon the required marks, brands, and stamps or 
labels. 

Upon every manufacturer’s package of oleomargarine 
the law (section 7, act of August 2, 1886) requires that 
there shall be securely affixed, by pasting, a label, on 
which shall be printed the number of the manufactory 
and the district and State in which it is situated, together 
with the following notice: 

Notice.— The manufacturer of the oleomargarine 
herein contained has complied with all the requirements 
of law. Every person is cautioned not to use either this 
package again (for oleomargarine) or the stamp thereon 
again, nor to remove the contents of this package without 
destroying said stamp, under the penalty provided by law 
in such cases. 

The label on which the above notice is to be printed is 
required to be not less than 4 and not more than 6 inches 
long and not less than 2J inches in width, and the printing 
thereon must be in plain, open, and legible letters, in black 
ink on white paper, and in addition to the above require¬ 
ments of law contain the official form number and the 
words “ For oleomargarine.” These labels will be in the 
following form: 


Form 219. 

For Oleomargarine. 

Factory No.-,-District, State of-. 

“ Notice.— The manufacturer of the oleomarga¬ 
rine herein contained has complied with all the 
requirements of law. Every person is cautioned not 
to use either this package again (for oleomargarine) 
or the stamp thereon again, nor to remove the con¬ 
tents of this package without destroying said stamp, 
under the penalty provided by law in such cases.” 


The label must be securely affixed, by paste, across the 
side of the package, in such a way as to be exposed to pub¬ 
lic view, and easily read. 

The tax of 10 cents per pound on oleomargarine colored 
to look like butter of any shade of yellow and of one- 
fourth of one cent per pound when not artificially colored, 
imposed by section 8 of the act of August 2, 1886, as 





43 


amended by the act of May 9, 1902, upon oleomargarine 
sold, or removed for consumption or use, on and after 
July 1,1902, must be paid by the manufacturer thereof. 

TAX PAID AND EXPORT STAMPS FOR OLEOMARGARINE. 

Two kinds of tax-paid stamps for oleomargarine will Two kinds of 
be issued, one representing the tax at the rate of 10 cents 
per pound, and the other at the rate of one-fourth of one 
cent per pound, the former to be placed on packages of 
oleomargarine artificially colored to look like butter of 
any shade of yellow, and the latter to be affixed to pack¬ 
ages of oleomargarine containing no artificial coloration. 

Artificially colored oleomargarine removed from the 
place of manufacture on or after July 1, 1902, must bear 
tax-paid stamps at the rate of 10 cents per pound. If 
found on the market not so stamped it will be forfeited 
to the United States. 

Under the law this tax must be represented by coupon stamp books, 
stamps, which are engraved and bound in book form in 
denominations of 10, 20, 30, 40, 50, 60, 70, 80, 90, and 100 
pounds. Each book contains 200 stamps and 1,800 cou¬ 
pons, and such stamps are obtainable upon application, 
on Form 218, to the collector of the district in which the 
factory is located. 

Each package removed from the factory on payment of gt ^JJ^J ng ° f 
the tax should have but one of these stamps affixed, which 
will correctly represent the taxable quantity in the pack¬ 
age, provided the same does not exceed 109 pounds. If 
the net weight is greater than 109 pounds and not greater 
than 218 pounds, the tax will be represented by two 
stamps only; where the quantity exceeds 218 pounds and 
is not greater than 327 pounds the tax will be represented 
by three stamps. For example: A 120-pound package 
may be covered by a 100-pound stamp with nine coupons 
and a 10-pound stamp with one coupon; and a 320-pound 
package may be covered by two 100-pound stamps each 
with nine coupons and one 100-pound stamp with two 
coupons. 

Stamps for the payment of tax on oleomargarine are fu ^“ps> how 
furnished to collectors of internal revenue on requisition 
Form 223. 

The tax-paid stamp must bear the signature of the col¬ 
lector and show thereon the date of payment of the tax, 


44 


the number of pounds, the number of the factory, and 
date when affixed and canceled. 

beSd with On the withdrawal of a package the proper tax-paid 
tacks - stamp must be affixed thereto by the manufacturer in the 

same manner as the label, except that in addition to the 
paste tacks must be used. Not less than five tacks must 
be driven through each stamp, one at each corner and one 
in the middle of the stamp. 

be canceled 11181 The am P having been affixed, it must be immediately 
canceled. For the purpose of cancellation the manufac¬ 
turer will use a stencil plate of brass or copper, in which 
will be cut five fine parallel waved lines, long enough to 
extend beyond each side of the stamp, onto the wood of 
the package. The imprinting from this plate must be 
with blacking or other durable coloring material, over 
and across the stamp, and in such manner as not to deface 
the reading matter on the stamp—that is, so as not to 
daub and make it illegible. The use of a rubber stamp, 
having five parallel waved lines for cancellation of tax- 
paid stamps, in lieu of a stencil plate of brass or copper, 
is permissible. 

stamps p 0 r 4 In case the package is removed from the factory for 
export free of tax under the provisions of section 16 of 
the act of August 2, 1886, an export stamp must be af¬ 
fixed and canceled by the inspecting collector or deputy 
collector in the same manner as the tax-paid stamp. 
Export stamps have no money value. 

Oleomargarine export stamps are printed in book form, 
each book containing 400 stamps, and are issued to col¬ 
lectors on requisition Form 223. 

what export Each export stamp must show the name of the collector 

stamp must . x 

show. issuing the same, together with his district and State, also 

the name of the exporter to whom issued, the number of 
the factory, the number of pounds, and the name of the 
collector or deputy collector by whom the stamp is affixed 
and canceled. 

ASSESSMENTS. 

Section 9 provides as follows: 

fo r Ass a es e sment That whenever any manufacturer of oleomargarine 
omargarinesells, or removes for sale or consumption, any oleomarga- 
paid 0 s u tlmp?. x ' ™e upon Which the tax is required to be paid by stamps, 
without the use of the proper stamps, it shall be the duty 
of the Commissioner of Internal Revenue, within a period 
of not more than two years after such sale or removal, 
upon satisfactory proof, to estimate the amount of tax 


45 


which has been omitted to be paid, and to make an assess¬ 
ment therefor and certify the same to the collector. The 
tax so assessed shall be in addition to the penalties im¬ 
posed by law for such sale or removal. 

Collectors will report taxes for assessment in accordance re port o^taxes 
with the above-quoted section on Form 23, as heretofore for assessment, 
required in case of other stamp taxes when the taxable 
article is removed without being stamped. (See Keg., 

No. 1.) 

Deputy collectors, in canvassing for objects of taxation , Deputy coi- 
will inquire after and concerning all persons in their re- vass for taxes - 
spective divisions who are liable to pay a special tax, and 
all persons owning or having the care and management of 
the articles liable to tax under the act of August 2, 1886, 
and to make a list of such persons and such articles. 

Each deputy will also note, over his signature, on the 
Government record, Form 60 or Form 216, of the manu¬ 
facturers, the date of examination and the condition of 
the accounts at that time, and such other facts as will be 
valuable upon any subsequent examination. 

SAMPLES OF OLEOMARGARINE FOR EXHIBITION. 

Upon application of the manufacturer to the collector pe r°iJ e f* r or re s 
to remove free of tax a portion of his product in bulk to movai of oieo- 

.7 A margarine for 

a public fair or exposition building for purposes of ex-exhibition, 
hibition within the district in which the factory is located, 
the collector may, provided that, in his judgment, the 
United States will suffer no loss by the arrangement, issue 
to the applicant a permit to remove the product in the 
presence of a deputy collector, who will ascertain and 
note the exact number of pounds so removed. 

The permit should state for what period the article may 
remain on exhibition, and should stipulate that it is not 
to be sold or offered for sale until returned to the factory, 
the return to be made in the presence of a deputy col¬ 
lector, who will see that the exact quantity is returned. 

The deputy should take an inventory of the quantity used 
for exhibition, and then check back on that inventory 
when the oleomargarine is returned to the factory. 

Collectors must not grant manufacturers permission to 
withdraw specimens, free of tax, for exhibition at a place 
outside of the district in which the producing factory is 
located, except upon express authority from the Commis¬ 
sioner of Internal Revenue. 


46 


GOVERNMENT RECORD TO BE KEPT BY MANUFACTURERS OF 
OLEOMARGARINE. 

m a n u f a c - Every manufacturer of oleomargarine is required to 
record. d a 11 y en ter daily in a book (Form 60 or Form 216) the quantity 
of materials used for the production of oleomargarine, 
the quantity of materials otherwise used, the number of 
packages and pounds of oleomargarine produced, the 
number of packages and pounds of oleomargarine sold or 
removed, and the name and the place of business or resi¬ 
dence of each person to whom sold or consigned. Model 
blank form furnished by the Commissioner of Internal 
Revenue. From the standpoint of making reports on 
Form 216 oleomargarine is considered as being in process 
of manufacture until packed in statutory packages, after 
which it is a finished product and must be reported pro¬ 
duced, even though the tax-paid stamps have not been 
affixed. Oleomargarine need not be packed as manufac¬ 
tured. 

Record open This book or form must always be kept at the manu- 
factory and be always open to the inspection or any 
internal revenue officer or agent. 

Penalty for For any false entry made in this book or form or the 

false entry. J J . 

omission, with fraudulent intent, of any entry required 
to be made therein, the manufacturer is liable to penalties 
imposed by section 18 of the act of August 2, 1886. 

If the manufacturer is also a retail dealer, he will enter 
sales as a manufacturer to himself as a retail dealer, 
giving all details, as in case of sale to any other person. 

All transactions must be entered in the order of time in 
which they occur, the records as to one day’s business 
being completed before those of the next day are com¬ 
menced. 

taxable founds The num ^ er °f pounds to be entered in this book is the 
tered 1 be en ' num ber of taxable pounds. For instance, a package con¬ 
taining 104 pounds actual weight should be entered as 
containing 11 pounds, because under the law imposing 
the tax the half pound is regarded as a whole pound. 

If, however, the invoice as to goods consigned to a 
wholesale dealer should state the actual number of 
pounds, a memorandum of the quantity covered by the 
invoice should also be made in the book, to be copied on 
Form 216, as hereinafter required in instructions relative 
to that form. 


47 


In reporting shipments of oleomargarine to 


third Sales to third 
party upon or- 

party upon the order of a wholesale dealer, the name and^|f e Jje al J r hole ' 
address of the actual consignee should be stated, and a 
memorandum, to the effect that it is sent upon the order of 
a wholesale dealer, naming the dealer. (Treas. Dec. No. 

679.) 

As a manufacturer of oleomargarine has the right to or ^| t r u g r J e r d i ° n le e ' 
sell the product of his manufactory at the place of manu-^J^o^’J®; 
facture, it is permissible for such manufacturer to receive stf oyed. 
back on his factory premises packages of oleomargarine 
returned by his customers and resell the same intact , or 
take up the contents as material to be reworked, or to 
destroy the same when spoiled or unsalable. 

In case any oleomargarine is returned to the factory it Qf ^urned^ie* 
should be noted in this book, with all details as to quan- omargarine. 
tity, the date when and the name and address of the per¬ 
son from whom each lot is received, which details may be 
entered in columns 15 to 23, under a special heading 
written across the page as follows: “ Special account of 
tax-paid oleomargarine returned to the factory.” 

If any “ returned ” oleomargarine is sold again intact, of Su h rned^fe- 
or destroyed, dumped for grease, or taken up in the omarganne - 
material account to be worked over, all the details should 
likewise be entered in this book under the special head¬ 
ing “ Withdrawal of returned oleomargarine.” But “ re¬ 
turned ” oleomargarine, unless sold again intact, should 
not be disposed of except under the inspection of an 
internal-revenue officer. 

The deputy collector, or other officer under whose in- to?s P certificate 
spection oleomargarine is destroyed, dumped for grease, rine destroyed, 
or otherwise disposed of (except when resold intact), will 
submit to the collector of the district a certifficate setting 
forth the date of the transaction, the naturenhereof, and 
the number of packages and quantity of oleomargarine 
involved, which certificate the collector will attach to the 
manufacturer’s return on Form 216, reporting the with¬ 
drawal, to be forwarded to the Commissioner of Internal 
Revenue. 

manufacturer’s monthly report. 


Every manufacturer of oleomargarine is required to tu ^/ s Voithiy 
make monthly a report, in duplicate, on Form 216 (with report, 
inside sheets when needed to complete the detailed state¬ 
ment), stating the quantity of materials used for the 



48 


production of oleomargarine, the quantity of materials 
otherwise used, the number of packages and pounds of 
oleomargarine produced, the number of. packages and 
pounds of oleomargarine sold or removed, and the name 
and the place of business or residence of each person to 
whom sold or consigned. 

separate re- If the manufacturer produces both oleomargarine arti- 
product. ficially colored and oleomargarine not artificially colored, 
taxable, respectively, at 10 cents and one-fourth of 1 cent 
per pound, separate reports for each product must be 
made on Form 216 each month, detailing the transactions 
fully as to both products, plainly marked to show the rate 
of tax. In such cases two books (Form 60) should be 
kept, or Form 216 properly bound may be kept in lieu 
thereof, as the reports on Form 216 are practically tran¬ 
scripts from these books, respectively. If, however, the 
manufacturer produces only oleomargarine not artifi¬ 
cially colored, a sworn statement on outside sheet of Form 
216, in duplicate, should be made, setting forth the fact 
that no artificially colored oleomargarine has been pro¬ 
duced. 

The blank is arranged substantially the same, excepting 
that it contains, in addition, a form of recapitulation for 
the detailed statements of production and original with¬ 
drawals; likewise a form of recapitulation for receipts 
and withdrawals of “ returned ” oleomargarine. It also 
contains a form of affidavit to the effect that the state¬ 
ments are true. 

mus?be made* The re P or t must be made to the collector on the 1st 
day of the month, or within ten days thereafter, covering 
the transactions of the preceding month. 
m^ ers s°ign w ?e° The report must be sworn to and signed. When the 
ports. person swearing to and signing a return is not the manu< 

facturer himself, or a member of the manufacturing firm, 
difficulty is sometimes experienced by internal-revenue 
officers in deciding whether the person swearing and sign¬ 
ing has authority to do so. 

In cases where, by reason of existing conditions, the 
returns of manufacturers of oleomargarine can not be 
signed and sworn to by the manufacturer, if an individ¬ 
ual; nor, if a firm, by some member of the firm; nor, if 
the manufacturer be an incorporated company, by the 
president, vice-president, secretary, or treasurer of the 
company, then it will be permissible for such returns to 
be signed and sworn to by a manager or superintendent 


49 


duly authorized by an instrument in writing (to be filed 
with the collector of the district), or by some person quali¬ 
fied to so act by a duly executed power of attorney. 

In all such cases the collector will furnish the Commis¬ 
sioner of Internal Revenue with a copy of the authority. 

Collectors will refuse to accept returns from manufac¬ 
turers of oleomargarine which are not sworn to as herein 
required. 

Reports sworn to before persons other than internal- 
revenue officers must have the seal of the attesting officer, 
as well as his signature, properly affixed thereto. If he 
have no seal, his official character must be authenticated 
under the seal of some officer empowered to so certify 
(such as the clerk of the court where his commission is 
recorded), and such authentication must be attached to 
the return. When the authentication has been once filed 
it will not be again required during the lifetime of the 
commission to which it relates, provided it specifies the 
date of expiration of the commission. 

It is strictly required that the returns shall be legibly . must 

prepared in every particular. Any report not clear and 
distinct will be returned to the manufacturer, through 
the collector, for revision, or an entire new report may be 
demanded. 

If manufacturers prefer to furnish their own forms,the, Manufac- 
blanks so provided must be indentical in form and charac- 0 w n 

ter with those supplied by collectors, and the paper must 
be of quality to endure much handling. 

Reports prepared on tissue paper will not be accepted 

SPECIAL INSTRUCTIONS. 

Collectors for districts wherein manufacturers of oleo¬ 
margarine are located are required to mark in the column 
headed “ Designation,” on inside pages of reports on Form 
216, against the names of consignees in their districts, the 
letter “ D ” for dealer and the letter “ C ” for consumer, 
as the case may be. 

When this designation has been made by the manufac¬ 
turers, the collectors should verify same by check or other 
distinctive mark. 

The reports should be forwarded to the Commissioner 
of Internal Revenue upon completion of the marking, 
which should be within five days after receipt by the 
collectors. 

. 6158—07- 4 


WHOLESALE DEALERS. 


Tax of whole¬ 
sale dealers. 
Rate $480. 


Exception. 
Tax at rate of 
$ 200 . 


When special 
taxes become 
<Jue. 


SPECIAL TAXES. 

Section 3 of the act of August 2, 1886, as amended by 
the act of May 9, 1902, provides as follows: 

Wholesale dealers in oleomargarine shall pay four hun¬ 
dred and eighty dollars. Every person who sells or offers 
for sale oleomargarine in the original manufacturer’s 
packages shall be deemed a wholesale dealer in oleo¬ 
margarine. But any manufacturer of oleomargarine who 
has given the required bond and paid the required special 
tax, and who sells only oleomargarine of his own produc¬ 
tion, at the place of manufacture, in the original pack¬ 
ages to which the tax-paid stamps are affixed, shall not be 
required to pay the special tax of a wholesale dealer in 
oleomargarine on account of such sales. 

Provided further , That wholesale dealers who vend no 
other oleomargarine or butterine except that upon which 
a tax of one-fourth of one cent per pound is imposed by 
this act , as amended , shall pay two hundred dollars; and 
such retail dealers as vend no other oleomargarine or 
butterine except that upon which is imposed by this act , 
as amended , a tax of one-fourth of one cent per pound 
shall pay six dollars . 

And sections thirty-two hundred and thirty-two, thirty- 
two hundred and thirty-three, thirty-two hundred and 
thirty-four, thirty-two hundred and thirty-five, thirty- 
two hundred and thirty-six, thirty-two hundred and 
thirty-seven, thirty-two hundred and thirty-eight, thirty- 
two hundred and thirty-nine, thirty-two hundred and 
forty, thirty-two hundred and forty-one, and thirty-two 
hundred and forty-three of the Revised Statutes of the 
United States are, so far as applicable, made to extend 
to and include and apply to the special taxes imposed by 
this section, and to the persons upon whom they are im¬ 
posed : * * * 

Section 53 of the act of October 1, 1890, provides as 
follows: 

That all special taxes shall become due on the first day 
of July, eighteen hundred and ninety-one, and on the first 
day of July in each year thereafter, or on commencing 
any trade or business on which such tax is imposed. In 
the former case the tax shall be reckoned for one year; 
and in the latter case it shall be reckoned proportionately 
(50) 


51 


from the first day of the month in which the liability to 
a special tax commenced to the first day of July follow¬ 
ing. * * * And it shall be the duty of special tax 

payers to render their returns to the deputy collector at 
such times within the calendar month in which the special 
tax liability commenced as shall enable him to receive 
such returns, duly signed and verified, not later than the 
last day of the month, except in cases of sickness or 
absence, as provided for in section three thousand one 
hundred and seventy-six of the Revised Statutes. 


Under the provisions of the above section the special- 
tax year commences July 1. The special tax of wholesale 
dealers who commence business in the month of July will 
be reckoned for one year, and the tax of wholesale dealers 
who commence business after the month of July will be 
reckoned proportionately from the 1st day of the month 
in which the liability to special tax commenced to the 1st 
day of J uly following. 

A person who has paid the special tax of $480 per an- wholesale 

, . iTi • , •• . ., dealer in oleo- 

num as wholesale dealer m oleomargarine is privileged to margarine pay- 

j- o i n g ixighcr tcix 

sell either or both oleomargarine artificially colored and may sell both 

i • . . ri / kinds of oleo- 

oleomarganne not artificially colored. The payment of margarine, 
the special tax of $200 per annum as wholesale dealer in 
oleomargarine covers only sales of the product not artifi¬ 
cially colored on which a tax of one-fourth of 1 cent per 
jiound is imposed. 

Every person intending to engage in the business of wholesale 

J 1 ° o o dealers must 

wholesale dealing in oleomargarine must register with the register, 
collector of internal revenue for the district in which the 


business is to be carried on, his name or style, place of 
residence, and the place where the business is to be carried 
on, and purchase his special-tax stamp. 

In case of a firm or company the names of the several 
persons constituting the same and their places of resi¬ 
dence must be so registered. All persons who are in the 
business June 80 must take similar action before continu¬ 
ing business from July 1. 

Section 4 of the act of August 2, 1886, imposes fines renaity for 
upon those who do business, rendering them liable to der returns, 
special tax as wholesale dealers in oleomargarine under 
the law without paying the special tax, as follows: 

* * * And every person who carries on the business Fines, 

of a wholesale dealer in oleomargarine without having 
paid the special tax therefor, as required by law, shall, 
besides being liable to the payment of the tax, be fined 
not less than five hundred nor more than two thousand 
dollars. 


52 


Receiver not a receiver, appointed by the court, is not liable to the 
tax. special tax of dealer in oleomargarine for selling that 

product under order of the court. 

Trustee not A trustee is not liable to special tax as a dealer in oleo- 

liable to special . . . . ,. , , • 

tax. margarine when he carries on the business at the princi¬ 

pal’s store and under the special-tax stamp issued to the 
principal for the residue of the term for which the special 
tax was paid. 

Assignee not An assignee may continue the business of a dealer in 

liable to special . . , . , , , n 

tax. oleomargarine under the assignor s special-tax stamp tor 

the residue of the term for which the special tax was paid 
without incurring liability to the special tax of dealer in 
oleomargarine. 

tion &1 company ^ transportation company is not liable to the special 
specia^tax to tax dealer * n oleomargarine for merely selling oleo¬ 
margarine to secure its freight charges. 

The following in reference to the liability of agents or 
brokers receiving and transmitting orders for oleomarga¬ 
rine to manufacturers is found in Volume I of Treasury 
Decisions, 1898, No. 18978, viz: 

- L nt bil or y bro- ^ iere orders are received by a manufacturer at his fac¬ 
kers. SGl 10 tory, and he there, in each instance, sells to the person 
ordering, and sets apart for him at that place the pack¬ 
ages ordered, and makes entries accordingly in his books, 
and makes his bill against such person, these packages 
sent out marked for delivery to this person may be 
shipped with other packages (in like manner sold at the 
factory to other persons), and upon their arrival at their 
destination may be delivered to these various owners with¬ 
out involving the manufacturer or his agent in special- 
tax liability at the place of such delivery. 

Such sales must be absolutely completed at the factory 
to the persons ordering, and if in any cases it be shown by 
book entries or otherwise that the manufacturer has really 
sold the packages shipped (however marked) to the per¬ 
son calling himself agent, the latter’s delivery of these 
packages to purchasers involves him in liability for spe¬ 
cial tax as a wholesale dealer at the place of such delivery. 

The identical package sold at the factory to each of 
these persons is the only package that the agent has a 
right to deliver to such purchaser at any place where the 
special-tax stamp of a wholesale dealer in oleomargarine 
is not held by such agent or by the manufacturer. 

(See Treas. Dec. Nos. 152 and 160, dated June 7 and 18, 
1900; also Treas. Dec. No. 485, dated March 14, 1902.) 

The following excerpt from vol. 3, Treasury Decisions 
(1900), No. 2, is of interest on this point: 


53 


SPECIAL TAX-WHOLESALE DEALER IN OLEOMARGARINE. 

Treas. Dec. No. 499. 

Where a manufacturer or wholesale dealer in oleomargarine sales by 
receives an order from a purchaser for original stamped packages agents, 
of oleomargarine in “ 1,000-pound lots,” the packages must be set 
apart at the factory or at the place of business of the wholesale 
dealer and shipped in such a manner as to entitle the purchaser to 
the ownership and receipt of the packages as his own property 
absolutely and unconditionally. If this is not done, and the agent 
of the manufacturer or wholesale dealer upon the arrival of the 
packages at their destination withholds them, or any part of them, 
from the purchaser until the latter pays for them and only then 
makes delivery, the sales are to be regarded as completed at the 
place of such delivery, and special tax is required to be paid there¬ 
for at that place. 

The appended decision of the United States district 
court for the southern district of Illinois is published for 
the information of all concerned. 

UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT OF ILLINOIS. 

Judd O. Hartzell v. The United States. 

Allen, W. J., judge: 

i 

Judd O. Hartzell filed his petition November 16, 1895, asking for 
judgment against the United States for an internal revenue tax as 
dealer in oleomargarine, which he alleges was improperly assessed 
against him. The tax and penalty amounted to $960. 

Petitioner claimed that he had not been a dealer in oleomarga¬ 
rine, and the facts as testified to by the petitioner and by one 
H. A. Owens, a hotel keeper at La Harpe, Ill., tended to show that 
Owens had been in the habit of using oleomargarine in wholesale 
quantities at his hotel, and that the goods, while ordered in 
Hartzell’s name, were for the sole use and benefit of Owens; that 
Hartzell acted as Owens’s agent, and that the purchaser and 
sellers all so understood the matter. 

The proof on behalf of the Government showed that a portion of 
the goods were purchased by Hartzell from Charles C. Clark, 
traveling salesman for Reid, Murdock & Co., of Chicago, Ill., and 
Clark testified that in April, 1893, he visited Hartzell for the pur¬ 
pose of selling him goods; that Hartzell wanted a tub of oleo¬ 
margarine, and, when informed by Clark that his house did not 
handle oleomargarine, he was requested by Hartzell to ask the 
house to procure it from some one who did handle it and have it 
shipped to him. The order went in to Reid, Murdock & Co. in 
this way on a separate slip of paper, and was by them turned over 
to Armour & Co., of Chicago, Ill., which latter company shipped 
the oleomargarine to Hartzell. Clark further testified that he 
was acquainted with Owens that kept the hotel in La Harpe; that 
he never sold him any oleomargarine and never took any order 
from him for such goods; that Hartzell asked him whether any 
license were required for handling oleomargarine, and Clark told 


54 


him there was such requirement, but that he was not posted and 
would be no authority on that subject. 

Another portion of the goods involved in the transaction appears 
to have been purchased by the petitioner from C. H. Pierce, trav¬ 
eling salesman for the Armour Packing Company, of Peoria, Ill. 

Pierce testified that he called on the petitioner about every two 
weeks during the year 1893, and on one or two occasions sold him 
oleomargarine in 40-pound lots; that he knew Owens, who kept 
the hotel, and never at any time sold him any oleomargarine. 

The inevitable conclusion from the evidence is that the sales of 
oleomargarine for which this tax and penalty were collected from 
the petitioner as a wholesale dealer were made to the petitioner 
and not to Owens, and that the petitioner in buying bought on his 
own account and not as the agent of Owens or any other person. 

On a demurrer to the original petition filed in this case I had 
occasion to file an opinion as to the questions of law arising on 
the pleadings December 24, 1897, overruling the demurrer and hold¬ 
ing that petitioner had cause of action against the Government if 
the facts could be proven as stated in his petition; hut on the 
trial before me the evidence failed to sustain the substantial aver¬ 
ments of the petition and a verdict was rendered for the Govern¬ 
ment, and judgment on the verdict followed. 

A manufacturer of oleomargarine, after having dis¬ 
continued business, directed one wholesale dealer in oleo¬ 
margarine who held some of his goods to consign the 
same to another wholesale dealer in oleomargarine, who 
sold the same on the late manufacturer’s account on com¬ 
mission. 

It is held that these transactions do not make the late 
manufacturer a wholesale dealer, as the special-tax stamp 
of the wholesale dealer w 7 ho sold the goods covered the 
sale at his place of business of the packages belonging to 
the late manufacturer, which the dealer received as such 
manufacturer’s property and sold on commission for him 
and on his account as his agent. 

The question having been raised as to whether whole¬ 
sale dealers in oleomargarine who store packages of that 
product upon premises other than the place for which the 
special tax of dealers has been paid may deliver packages 
from such storage house upon sales actually made at the 
place of business for which the tax has been paid, it is 
held that such proceeding is proper. But in every in¬ 
stance it should be clear that the sale has been completed 
at the wholesale place covered by the special-tax stamp, 
by constructive delivery there, prior to the actual removal 
of the package from the place of storage for delivery to 
the purchaser. 


55 


Receipt of an order at the wholesale place, and the 
sending of such order from the wholesale place to the 
storage house for delivery, is not a sale of the package at 
the wholesale place. In order to complete the sale at the 
wholesale place the dealer must not merely receive the 
order at the wholesale place, but he must make out and 
there deliver to the customer ordering or send to him 
direct from the wholesale place a bill of sale, in each in¬ 
stance, transferring to him the ownership of the package 
before there is any actual delivery of the package at the 
storage house. 

Special-tax stamps are not transferable from one dealer special - tax 
to another. When a new member is added to a firm a transferable 1 ? 0 
new stamp will be required. 

Any number of persons doing business in copartnership 
at any one place are required to pay but one special tax. 

A person carrying on the business of a wholesale dealer 
in oleomargarine at more than one stand or location must 
pay special tax for each such stand or location. 

A member of a firm who has acquired the interests of 
the other members may carry on the business without pay¬ 
ment of additional special tax. 

A dealer may move from one location to another with¬ 
out paying an additional special tax, provided such 
change or removal is registered with the collector of 
internal revenue. 

When a person who has paid the special tax dies, his 
legal representatives may carry on the business for the 
residue of the term for which the special tax was paid 
without paying additional special tax. 

WHOLESALE DEALERS’ PACKAGES. 

Under the provisions of section 3, above quoted, and of wholesale 

. x . . • 7 dealers must 

the following clause m section 6 of the same act, “allsen in original 
° . ' packages. 

sales made by manufacturers of oleomargarine and whole¬ 
sale dealers in oleomargarine shall be in original stamped 
packages,” wholesale dealers can not sell or offer for sale 
oleomargarine in any form but the manufacturer’s origi¬ 
nal package. 

Section 11 of the act of August 2, 1886, provides as 
follows: 

That every person who knowingly purchases or re- Penalty, 
ceives for sale any oleomargarine which has not been 
branded or stamped according to law shall be liable to a 
penalty of fifty dollars for each such offense. 


56 


A wholesale dealer is required to account for each pack¬ 
age of oleomargarine received into his establishment as 
hereinafter prescribed. 

BOOKS AND RETURNS OF WHOLESALE DEALERS IN OLEOMARGA¬ 
RINE. 

Section 6, act of May 9, 1902: 

Books, re- That wholesale dealers in oleomargarine , process , reno- 
urns, e c. va ted , or adulterated butter shall keep such books and 

render such returns in relation thereto as the Commis¬ 
sioner of Internal Revenue , with the approval of the Sec¬ 
retary of the Treasury , may, by regulation , require; and 
such books shall be open at all times to the inspection of 
any internal-revenue officer or agent. And any person 
who willfully violates any of the provisions of this sec¬ 
tion shall for each such offense be fined not less than fifty 
dollars and not exceeding five hundred dollars , and im¬ 
prisoned not less than thirty days nor more than six 
months. 

Under the above provision of law wholesale dealers are 
required to keep books and render returns as follows: 

GOVERNMENT RECORD It) BE KEPT BY WHOLESALE DEALERS. 

Record to be Every wholesale dealer in oleomargarine is required to 

kept by whole- J ° ^ 

sale dealers, enter, on the day when received, in a book (lorm 61) or 
on Form 217, properly bound, the number of packages 
and pounds of oleomargarine received, the number of 
packages and pounds of oleomargarine disposed of, on 
day sold or removed, and the name and place of business 
or residence of each person to whom sold or consigned. 
(Model blank form furnished by Commissioner of In¬ 
ternal Revenue.) 

Separate books (Form 61) or Form 217 must be kept 
for the products taxable at the different rates. 

This book or form must always be kept at the dealer’s 
place of business and be always open to the inspection of 
any internal revenue officer or agent. 

If the. wholesale dealer is also a retail dealer in oleo¬ 
margarine, he will enter in this book or form sales as a 
wholesale dealer to himself as a retail dealer, giving all 
the details, as in the case of a sale to another person, 
consignments Wholesale dealers will not take up on this book or form 

on orders. , . _ . 

any oleomargarine not actually received by them. Oleo¬ 
margarine shipped by a manufacturer to a consignee, 
upon order of a wholesale dealer, should not be taken up 
on the report of the dealer so ordering as having been 
received by such dealer. 


57 


All transactions must be entered in the order of time in 
which they occur, the records as to one day’s business 
being completed before those of the next day are com¬ 
menced. 

RETURNS OF WHOLESALE DEALERS IN OLEOMARGARINE. 

Wholesale dealers in oleomargarine will make monthly Returns, 
returns on Form 217 (with inside sheets when needed t© 
complete the detailed statements), showing in detail the 
number of packages and number of pounds of oleomarga¬ 
rine received direct from manufacturers and other whole¬ 
sale dealers, also the quantity disposed of, with the name 
and address of each person to whom sold or consigned. 

These returns will be rendered on the first day of the 
month succeeding that for which the return is made, or 
within ten days thereafter, in duplicate, to the collector, 
who will forward one copy to the Commissioner of Inter¬ 
nal Revenue. 

All sample packages of oleomargarine received during sample pack- 
the month should be reported on Form 217, whether ported. how re ’ 
included in the invoice or not. When disposed of, credit 
should be taken for the number of packages and pounds 
for distribution as samples. 

Returns on Form 217 must be made for each of said separate re¬ 
products. Reports embracing both oleomargarine artifi- product? 1 each 
cially colored and not artificially colored can not be ac¬ 
cepted. 

It is strictly required that the returns shall be legibly must 

prepared in every particular. Any report not clear and 
distinct will be returned to the dealer, through the col¬ 
lector, for revision, or an entire new report may be de¬ 
manded. 

If wholesale dealers prefer to furnish their own forms, Dealers may 
the blanks so provided must be identical in form and own blanks, 
character with those supplied by collectors, and the paper 
must be of quality to endure much handling. Reports 
prepared on tissue paper will not be accepted. 

The arrangement of the form is as follows: 

The detailed statements to be made on the first and fol- Arrangement 

. . of form. 

lowing pages and the order of their arrangement are indi¬ 
cated in the recapitulation on the last page. All items in 
each statement of oleomargarine received or disposed of 
must be arranged in the order of time in which the goods 
are received or disposed of, as the case may be. Inside 
pages have been prepared especially for the purpose of 


58 


recording* oleomargarine sent out, but if needed to con¬ 
tinue the details of oleomargarine received, certain head¬ 
ings should be modified. No detailed statement for 
entries on line 1 of the recapitulation is required. 

The detailed statement of oleomargarine received direct 
from the manufacturers during the month will be com¬ 
menced at the top of page 1 and continued in regular 
order of time from the first to the last business day of 
the month until complete. The total number of packages 
and the total number of pounds in each shipment re¬ 
ceived during the month should be stated. The totals of 
columns “ Number of packages ” and “ Number of 
pounds ” will be carried into the “ Recapitulation,” on 
line 2. 

If any oleomargarine has been received during the 
month from other wholesale dealers, the words “ Oleo¬ 
margarine received from other wholesale dealers ” will 
be written in red ink across the page under the total of 
“ Oleomargarine received direct from manufacturers;” 
and the items and totals of such receipts will be entered 
under this heading in proper order, and the totals of 
packages and pounds carried into line 3 of the “ Reca¬ 
pitulation.” 

charges n * e r If any oleomargarine credited as having been sent out 
to any customer other than a wholesale dealer is returned 
as not acceptable, or if any oleomargarine has been for 
any reason erroneously credited as having been disposed 
of, it should be charged back into the account. The items 
of such counter charges , if any, with name and address of 
party returning the article, should be entered under an 
appropriate red-ink heading under the total of the 
“ Quantity received from other than wholesale dealers,” 
and the totals carried into line 4 of the “ Recapitulation.” 

The totals on line 5 are those of items on lines 1, 2, 3, 
and 4, and show the whole quantity to be accounted for. 
ri^e 1 dispose! of ^ an y 0 l eomar g ar i ne has been disposed of during the 
to or received month to other wholesale dealers, the words “ Disposed of 

fromother 7 . 1 ' 

wholesale deal- to other wholesale dealers ” will be written m red ink 
across the page, usually the top of the second page, after 
the total of “ Oleomargarine received from other whole¬ 
sale dealers” (or total of countercharges, if any) ; and 
the items and totals of oleomargarine so disposed of will 
be entered under this heading in proper order and the 
totals of packages and pounds carried into line 6 of the 
“ Recapitulation.” 


59 


If any oleomargarine has been disposed of during the Oleomarga- 

ii , , & rine disposed of 

montn to retail dealers, or others not known to be whole- to other than 
sale dealers, the words u Disposed of to persons not known ers * 
to be wholesale dealers ” will be written in red ink across 
the page, under the total of “ Oleomargarine disposed of 
to other wholesale dealers; ” and the items and totals of 
oleomargarine so disposed of will be entered on line 7 
of the “ Recapitulation.” Oleomargarine disposed of by 
a wholesale dealer to himself as a retail dealer or con¬ 
sumer should be included in this statement. 

In case oleomargarine is destroyed by fire or other casu- ri ^ e le ^“ t ^|^- 
alty on the premises of a wholesale dealer, the details will 
be entered under an appropriate heading under the 
“ Total disposed of to persons not known to be wholesale 
dealers,” and the totals carried into line 8 of the “ Re¬ 
capitulation.” 

If any oleomargarine remains on hand at the close of r i?e e o°n“ a£d. a ’ 
the month, the words “ Oleomargarine on hand at close of 
the month ” will be written in red ink across the page 
under the “ Total disposed of to persons not known to be 
wholesale dealers; ” and the quantity of each manufac¬ 
turer’s product so left on hand will be entered, and the 
totals will be entered on line 9 of the “ Recapitulation.” 

The totals on line 10 of the “ Recapitulation ” are those 
of items on lines 6, 7, 8, and 9, and show the whole quan¬ 
tity accounted for. If the account is correct, the totals 
on line 10 will be the same as those on line 5. 

In giving the address of parties to whom goods are co ^JJ!g of 
sent, specify the county and State in addition to city or 
town, and also state the street and number in cases of 
shipment to cities or towns wherein the streets are named 
and numbered and the houses are numbered. 

The number of pounds to be reported should be thep 0l ^ n d S x m a ustbf 
number of taxable pounds. If, however, the invoice as to reported - 
goods consigned should state the actual number of pounds, 
a memorandum of the quantity covered by the invoice 
should be made at the foot of the page. 

The name of the person swearing to the recapitulation, be signed! 
together w T ith official title and name of firm rendering re¬ 
port, must be entered in the blank for that purpose imme¬ 
diately below line 10, and also be signed on the dotted 
lines below the right hand of the printed affidavit. 

Reports sworn to before persons other than internal How sworn to. 
revenue officers must have the seal of the attesting officer, 
as well as his signature, properly affixed thereto. If he 


60 


has no seal, his official character must be authenticated 
under the seal of some officer empowered to so certify 
(such as the clerk of the court where his commission is 
recorded), and such authentication must be attached to 
the return. When the authentication has been once filed 
it will not be again required during the lifetime of the 
commission to which it relates, provided it specifies the 
date of expiration of the commission. 

When the person swearing to and signing a return is 
not the dealer himself, difficulty is sometimes experienced 
by internal revenue officers in deciding whether the person 
so swearing and signing has authority to do so. 

Returns I n cases where, by reason of existing conditions, the 

signed by man- ^ 7 

ager or superin- returns of wholesale dealers in oleomargarine can not be 
tendent. . ... 

signed and sworn to by the wholesale dealer, if an indi¬ 
vidual ; nor, if a firm, by some member of the firm; nor, 
if the wholesale dealer be an incorporated company, by 
the president, vice-president, secretary, or treasurer of 
the company, then it will be permissible for such returns 
to be signed and sworn to by a manager or superintendent 
duly authorized by an instrument in writing (to be filed 
with the collector of the district) or by some person qual¬ 
ified to so act by a duly executed power of attorney. 

In all such cases collectors will furnish the Commis¬ 
sioner of Internal Revenue with a copy of the authority. 
ports Sisned re ~ Collectors will refuse to accept returns from wholesale 
dealers in oleomargarine which are not signed and sworn 
to as herein required. 

SPECIAL INSTRUCTIONS. 

Collectors for districts wherein wholesale dealers in 
oleomargarine are located are required to mark in the 
column headed “ Designation,” on inside pages of reports 
on Form 217, against the names of consignees in their dis¬ 
tricts, the letter “ D ” for dealer and the letter u C ” for 
consumer, as the case may be. 

When the designation has been made by the wholesale 
dealers the collectors should verify same by check or other 
distinctive mark. 

The reports should be forwarded to the Commissioner 
of Internal Revenue upon completion of the marking, 
which should be within five days after their receipt by the 
collectors. 


RETAIL DEALERS. 


SPECIAL TAXES. 

Section 3 of the act of August 2, 1886, as amended by 
the act of May 9, 1902, provides as follows: 

Retail dealers in oleomargarine shall pay forty-eight 
dollars. Every person who sells oleomargarine in less 
quantities than ten pounds at one time shall be regarded 
as a retail dealer in oleomargarine. 

Provided further , That * * * such retail dealers 

as vend no other oleomargarine or butterine except that 
upon which is imposed by this act , as amended , a tax of 
one-fourth of one cent per pound , shall pay six dollars . 

And sections thirty-two hundred and thirty-two, thirty- 
two hundred and thirty-three, thirty-two hundred and 
thirty-four, thirty-two hundred and" thirty-five, thirty- 
two hundred and thirty-six, thirty-two hundred and 
thirty-seven, thirty-two hundred and thirty-eight, thirty- 
two hundred and thirty-nine, thirty two hundred and 
forty, thirty-two hundred and forty-one, and thirty-two 
hundred and forty-three of the Revised Statutes of the 
United States are, so far as applicable, made to extend to 
and include and apply to the special taxes imposed by 
this section, and to the persons upon whom they are im¬ 
posed * * *. 

Section 53 of the act of October 1 , 1890, provides— 

That all special taxes shall become due on the first day 
of July, eighteen hundred and ninety-one, and on the first 
day of July in each year thereafter, or on commencing 
any trade or business on which such tax is imposed. In 
the former case the tax shall be reckoned for one year; 
and in the latter case it shall be reckoned proportionately, 
from the first day of the month in which the liability to a 
special tax commenced to the first day of July following. 
* * * And it shall be the duty of special tax payers to 

render their returns to the deputy collector at such times 
within the calendar month in which the special tax lia¬ 
bility commenced as shall enable him to receive such re¬ 
turns, duly signed and verified, not later than the last day 
of the month, except in cases of sickness or absence, as 
provided for in section three thousand one hundred and 
seventy-six of the Revised Statutes. 

( 61 ) 


Special tax, 
$ 48 . 

Retail dealer 
defined. 


Special tax 
retail dealer. 
Exception. 


Special tax, 
when due. 


62 


Special tax, 
how reckoned. 


Dealers must 
register with 
the collector. 


Fines. 


Receiver not 
liable to special 
tax. 


Trustee not 
liable to special 
tax 


Under the provisions of the above section the special- 
tax year commences July 1. The special tax of retail 
dealers who commence business during the month of July 
will be reckoned for one year, and the tax of retail dealers 
who commence business after the month of July will be 
reckoned proportionately from the 1st day of the month 
in which the liability to special tax commenced to the 1st 
day of July following. 

A person who has paid the special tax of $48 per an¬ 
num as retail dealer in oleomargarine, is privileged to 
sell either, or both, oleomargarine artificially colored and 
oleomargarine not artificially colored. The payment of 
the special tax of $6.00 per annum as retail dealer in 
oleomargarine covers only sales of the product not artifi¬ 
cially colored on which a tax of one-fourth of 1 cent per 
pound is imposed. 

Every person intending to engage in the business of 
retail dealer in oleomargarine must register with the col¬ 
lector of internal revenue for the district in which the 
business is to be carried on, his name or style, place of 
residence, and the place where the business is to be con¬ 
ducted, and purchase his special-tax stamp. In case of a 
firm or company, the names of the several persons consti¬ 
tuting the same and their places of residence must be so 
registered. All persons who are in the business June 30 
must take similar action before continuing the business 
from July 1. 

Section 4 of the act of August 2, 1886, imposes fines 
upon those who do business rendering them liable to spe¬ 
cial tax as retail dealers in oleomargarine under the law 
without paying the special tax, as follows: 

And every person who carries on the business of a re¬ 
tail dealer in oleomargarine without having paid the spe¬ 
cial tax therefor, as required by law, shall, besides being 
liable to the payment of the tax, be fined not less than 
fifty nor more than five hundred dollars for each and 
every offense. 

A receiver appointed by the court is not liable to the 
special tax of dealer in oleomargarine for selling that 
product under order of the court. 

A trustee is not liable to special tax as a dealer in oleo¬ 
margarine for the residue of the term for which the spe¬ 
cial tax was paid when he carries on the business at the 
principal’s store and under the special-tax stamp issued to 
the principal, 



63 


An assignee may continue the business of a dealer in.. Assignee not 
oleomargarine for the residue of the term for which the tax * 
special tax was paid under the assignor’s special-tax 
stamp without incurring liability to the special tax of 
dealer in oleomargarine. 

Any number of persons doing business in copartnership Copartner- 
at any one place are required to pay but one special tax. Shlp 

A person carrying on the business of retail dealer in special tax 

. ° , for each place 

oleomargarine at more than one stand or location must of business, 
pay special tax for each such stand or location. 

A member of a firm who has acquired the interests of Successor not 
. , 1 liable to special 

the other members may carry on the business without tax. 
payment of additional special tax. 

A dealer may move from one location to another with- be C not!fled of 
out paying an additional special tax, provided such removals - 
change or removal is registered with the collector of in¬ 
ternal revenue. 

When a person who has paid the special tax dies, bis ge ^ t ®sai g repre- 
lcgal representatives may carry on the business for the^|£ le to s P ecial 
residue of the term for which the special tax was paid 
without paying additional special tax. 

Special-tax stamps are not transferable from one special - tax 

i \ TT1 . stampnot 

dealer to another. When a new member is added to a transferable. 

firm a new stamp will be required. 

Retail dealers must keep their special-tax stamps con- sta^m^musi^be 
spicuously posted in their places of business. For neg- sp^cuwis 1 piace! 
lect to do this the law imposes a penalty equal to the 
amount of special tax and the costs of prosecution. Dou¬ 
ble this amount is imposed for willful neglect or refusal 
to conspicuously post the stamp. 

A dealer in oleomargarine at a city market who trans- g p R e e “?J al t °* 
fers his business from one stand to another, or from one stam P- 
market to another, is entitled, under section 3241, R. S., 
to have his special-tax stamp transferred and retrans¬ 
ferred as often as he thus removes. Collectors are per¬ 
mitted to issue to such dealer a special-tax stamp in gen¬ 
eral terms, for example, “At markets in Washington, 

D. C.,” so that in removing from one stand to another 
the dealer may, at the same time, remove his stamp and 
post it up, without applying for its formal transfer. 

A dealer can conduct business within the market house ma ^ k e e J 1 ^’J e n 
at one stall only at one time under one special-tax stamp, one^speciai-tax 
The business at the stall where the special-tax stamp is 
posted must be discontinued before business at the place 
pf transfer has begun. 


64 


The transfer of the special-tax stamp to a location out¬ 
side the market house can be made only upon notice to 
the collector, so that the transfer may be recorded. 

d e a i e r re- It is the duty of dealers in butter to ascertain the true 
g P o°ods ib soid. f ° r character of the article which they sell or offer for sale; 

and if they are found to have sold oleomargarine, though 
they show that they believed it to be genuine butter, the 
special tax will be assessed against them. 

Keeper of The keeper of a restaurant who furnishes oleomarga- 
a dealer. ° rine merely to patrons at table can not be regarded as a 
retail dealer in oleomargarine. By section 6 of the act 
a retail dealer is confined strictly to sales “ from original 
stamped packages.” (32 Int. Rev. Rec., p. 381.) 

RETAIL DEALERS’ PACKAGES. 

The form in which retail dealers may sell oleomarga¬ 
rine is prescribed in section 6 of the act of August 2,1886, 
which reads as follows: 

Retail dear * * * Retail dealers in oleomargarine must sell only 

from original- from original stamped packages, in quantities not exceed- 
stampcd pack- j D g ^ en pounds, and shall pack the oleomargarine sold 
by them in suitable wooden ©r paper packages, which 
shall be marked and branded as the Commissioner of 
Internal Revenue, with the approval of the Secretary of 
the Treasury, shall prescribe. Every person who know¬ 
ingly sells or offers for sale, or delivers or offers to de¬ 
liver, any oleomargarine in any other form than in new 
wooden or paper packages as above described, or who 
packs in any package any oleomargarine in any manner 
contrary to law, or Avho falsely brands any package or 
affixes a stamp on any package denoting a less amount of 
tax than that required by law, shall be fined for each 
offense not more than one thousand dollars and be im¬ 
prisoned not more than two years. 

Retail dealer A retail dealer in oleomargarine is permitted bv the sec- 

permittedtosell J J .. . 1 J „ . 

10 pounds oie-tion above quoted to sell as much as 10 pounds of oleo- 

omargarine at . . . . 

one sale, how. margarine at one sale; but as the same section requires 
him to sell it from the original stamped package, and sec¬ 
tion 3 of the act precludes his selling the original stamped 
package without payment of special tax by him as a 
wholesale dealer, the only course for him to pursue under 
these circumstances is to sell this quantity directly from 
the original stamped package and deliver it in another 
package, properly marked and branded, to the purchaser. 
(See decisions reported under section 3, published in 
volume 32, Int. Rev. Rec., p. 318.) 


65 


While a retail dealer who sells from u original stamped 
packages to one person at one time quantities of oleo¬ 
margarine aggregating more than 10 pounds, which he 
puts up and delivers in other packages, each containing 
10 pounds or less, does not thereby involve himself in 
special-tax liability as a wholesale dealer, since a whole¬ 
sale dealer in oleomargarine is defined by the statute to 
be “ every person who sells or offers for sale oleomarga¬ 
rine in the original manufacturer’s packages,” yet he 
incurs the penalty of $1,000 imposed by section 18 of the 
act of August 2, 1886, by his infringement of the provi¬ 
sions of section 6 of the act in selling more than 10 pounds 
at one time, unless he can show that the oleomargarine in 
each package so delivered differed in grade from that in 
the other packages delivered on the same order and was, 
therefore, the subject of a separate sale, upon the prin¬ 
ciple laid down by the court in United States v. Wm. V. 

James. (30 Int. Rev. Rec., p. 29; 32 Int. Rev. Rec., p. 

381.) 

As the retail dealer is required to sell from original Retail dealer 
stamped packages, and can not, as a retail dealer, sell in his own pack P 
such packages, he is compelled to make up his own pack- ^ 
ages. (See section 6, act of August 2, 1886.) 

New wooden or paper packages similar to those usually 
employed in selling butter and lard at retail may be used 
by the retail dealer in oleomargarine. • 

Each retailer’s wooden or paper package must have the re ?ifi rk d n ei s ie?? 
name and address of the dealer printed or branded P acka se. 
thereon, likewise the words “ Pound ” and “ Oleomarga¬ 
rine,” in letters not less than one-quarter of an inch 
square, and the quantity written , printed , or branded 
thereon in figures of the same size (one-quarter of an 
inch square), substantially as follows: 


I POTJND 

OLEOMARGARINE. 


1 Here give dealer’s name. 2 Here give street number. 
3 Here give name of city or town. 

6153—07-5 






66 


words “ oieo ; The words “ Oleomargarine ” and “ Pound,” which are 

margarine 0 . , 

req d uiref°to d be re( l u ^ re( ^ to P r i n t e d or branded on retailers wooden or 

branded 6 on vl P a P er packages, in letters not less than one-quarter of an 

ages 618 ’ P ack ‘ inch square, and the quantity which is required to be 
written , printed , or branded thereon in figures of like size, 
must be so placed as to be plainly visible to the purchaser 
at the time of delivery to him. Illegible or concealed 
marks and brands are not those contemplated and re¬ 
quired by the law and regulations. It will not be deemed 
a compliance with this regulation if the word “ Oleomar¬ 
garine ” and the other required words and figures shall 
be illegibly branded or printed, or so placed as to be con¬ 
cealed from view, by being on the inside of the package, 
or by folding in the stamped portion of the paper sheet 
used for wrapping or otherwise. The required words and 
figures must be legibly printed or branded and conspicu¬ 
ously placed, and no other word or business card should 
be placed in such juxtaposition thereto as to divert atten¬ 
tion from the fact that the contents of the package are 
wholly oleomargarine. 

The foregoing regulations relative to the marking or 
branding of retail packages apply equally to sales of both 
classes of oleomargarine. 

The color of the ink with which the words are printed 
must be in the strongest contrast to the color of the 
package. 

Retail dealers The question having arisen as to whether retail dealers 

may wrap pack- . 1 . & . 

ages in ordi- i n oleomargarine may continue the practice of wrapping 

nary wrapping _ ° # J _ 1 A ° 

paper. their goods delivered to customers in ordinary brown 

wrapping paper, such packages being similar to those 
usually employed in selling butter and lard at retail, and 
being also marked as required by the regulations, it is 
held that such practice is in compliance with the law. 

The practice on the part of retail dealers of preparing 
retail packages of oleomargarine in advance of sales for 
delivery to prospective customers is contrary to law and 
is not permitted. Packages so prepared and separated 
from the manufacturers’ original package are forfeited 
under the law and should be seized when so found. 

However, retail dealers in oleomargarine are permitted 
to detach the top or cover of the original stamped pack¬ 
age and place such package in position convenient for 
the purpose of displaying the product, provided that in 
so doing the marks or brands required by the law and 


67 


regulations are not obscured or in any way rendered 
inconspicuous. 

A person negotiating sales and making delivery as 
agent at a place other than the place of business of the 
principal, thereby becomes a dealer in oleomargarine, 
whether he acts in the name of his principal or not. The 
law makes no provision for the peddling of oleomarga¬ 
rine, and no special-tax stamp can be issued authorizing 
sales by peddlers or persons acting in that capacity mak¬ 
ing sales and deliveries from place to place. It is there¬ 
fore held that special-tax liability is incurred at each 
place where such sales and deliveries are made. 

The delivery by retail dealers in oleomargarine of re¬ 
tail dealers’ packages which bear the marks and brands 
required by law and regulations, after actual sale or to 
fill bona fide orders previously received, is permissible; 
but the preparation of such retail packages to be kept 
on hand or sent out in wagons in advance of sale, or 
orders for same, separated from the original stamped 
packages, is unlawful and the product in that condition 
is subject to seizure. 

The oleomargarine must remain in the original stamped 
package until sold therefrom. (Section 6, act of August 
2 , 1886 .) 

The purchaser, in these cases, is notified of the nature 
of the article purchased, which seems to be the leading 
purpose of the provision. 

The penalty imposed upon retail dealers for knowingly 
selling or offering to sell oleomargarine in any other form 
than in new wooden or paper packages is prescribed in 
section 6, above noted. 

Section 13 of the act of August 2, 1886, provides 
whenever any stamped package containing oleomargarine is|J^P s p f a r c ° k m 
emptied, it shall be the duty of the person in whose hands a ^ es - 
the same is to destroy utterly the stamps thereon, and upon 
such person as willfully neglects or refuses so to do imposes 
a fine for each offense of not less than fifty dollars, and im¬ 
prisonment not less than ten days nor more than six months. 

The same section also imposes a fine for each offense 
not exceeding $100 and imprisonment not more than one 
year upon any person who fraudulently gives away or 
accepts from another, or who sells, buys, or uses for pack¬ 
ing oleomargarine any empty stamped package. 

Any revenue officer may destroy any emptied oleomar¬ 
garine package upon which the tax-paid stamp is found. 


68 


Penalties. 


Sections 11 and 12 impose penalties as follows upon any 
person who knowingly purchases or receives for sale pack¬ 
ages of oleomargarine that have not been branded and 
stamped, and for knowingly purchasing or receiving oleo¬ 
margarine for sale from any manufacturer who has not 
paid the special tax as such: 

Sec. 11. That every person who knowingly purchases 
or receives for sale any oleomargarine which has not been 
branded or stamped according to law shall be liable to a 
penalty of fifty dollars for each such offense. 

Sec. 12. That every person who knowingly purchases 
or receives for sale any oleomargarine from any manufac¬ 
turer Avho has not paid the special tax shall be liable for 
each offense to a penalty of one hundred dollars, and to a 
forfeiture of all articles so purchased or received, or of 
the full value thereof. 

Note. —Circular No. 414 Revised, relative to retail dealers in 
oleomargarine, is an .extract from the law and these regulations 
and is furnished by collectors to dealers in oleomargarine. Col¬ 
lectors are directed to place a copy of this circular in the hands of 
each person to whom a special-tax stamp as dealer in oleomarga¬ 
rine is issued. 


OLEOMARG-ARINE FOR EXPORT . 1 


Section 16 of the act of August 2, 1886 (24 Stat., 209), 
provides as follows: 

That oleomargarine may be removed from the place of How oieo- 
manufacture for export to a foreign country without pay-^e^^porTed 
ment of tax or affixing stamps thereto, under such reg-meS 0 of tax ay * 
illations and the filing of such bonds and other security 
as the Commissioner of Internal Revenue, with the 
approval of the Secretary of the Treasury, may pre¬ 
scribe. Every person who shall export oleomargarine 
shall brand upon every tub, firkin, or other package con¬ 
taining such article the word “ oleomargarine,” in plain 
roman letters not less than one-half inch square. 

For the purpose of carrying out the provisions of said 
section, and by virtue of the authority conferred therein, 
regulations are prescribed (see No. 29) which apply with 
equal force to oleomargarine taxed at the rate of 10 
cents per pound, as well as at the rate of one-fourth of 1 
cent per pound. 

Exports are commodities conveyed from one country 
to another in trade or traffic. 

To export articles is to carry them from a State or 
country to other nations. 

An exporter of oleomargarine gives a bond conditioned 
that the oleomargarine shall be entered for export from 
the United States, and evidence furnished the collector 
of internal revenue that the same has been laden on a 
foreign-bound vessel or car, and that such article was 
entered on the outward manifest or waybill of such ves¬ 
sel or car, and was actually landed at a foreign port. 

Section 16, act of August 2, 1886, authorizes the ex¬ 
portation of oleomargarine from the place of the manu¬ 
facturer to a foreign country without the payment of tax 
thereon or affixing stamps thereto. 

It is held that sales and deliveries of oleomargarine to 
vessels in ports of this country, although such vessels are 

1 Attention is called to the fact that no provision has been made 
in the law for the allowance of drawback on oleomargarine on 
which the internal revenue tax has been paid. 



70 


to sail for foreign ports or places, are not exportations, 
as contemplated by section 1G, act of August 2, 1886, and 
that oleomargarine so sold or delivered must be tax paid. 

Bearing out the opinion of this office on what consti¬ 
tutes an exportation as set forth in Treasury Decision 
No. 657 is a decision of the Supreme Court of the United 
States, under date of May 18, 1908, in which it was held 
that the placing on board vessels in ports of the United 
States bound for foreign ports of articles exported free 
of tax or with the allowance of a drawback to be con¬ 
sumed by the vessels en route is not such an exportation 
as entitles the sellers to the privileges of the law allowing 
such withdrawal free of tax or with the benefit of a draw¬ 
back. Where there is any doubt as to the construction 
of the statute granting a privilege such doubt must be 
resolved in favor of the Government. The words “ ex¬ 
port ” and w exportation ” are generally used in the sense 
of transportation from this to a foreign country. (See 
Swan and Finch Co. v. United States, 190 Fed. Rep., 
148.) 

CHEMISTS AND MICROSCOPISTS. 

Section 14 of the act of August 2, 1886, provides— 

mi??o e s“op t ilts nd That there shall be in the office of the Commissioner of 
Internal Revenue an analytical chemist and microscopist, 
who shall each be appointed by the Secretary of the 
Treasury, and shall each receive a salary of two thousand 
five hundred dollars per annum; and the Commissioner 
of Internal Revenue may, whenever in his judgment the 
necessities of the service so require, employ chemists and 
microscopists, to be paid such compensation as he may 
deem proper, not exceeding in the aggregate any appro¬ 
priation made for that purpose. And such Commis- 
commission- sioner is authorized to decide what substances, extracts, 
contested causes! mixtures, or compounds which may be submitted for his 
inspection in contested cases are to be taxed under this 
act; and his decision in matters of taxation under this act 
to decide as shall be final. The Commissioner may also decide 
bein g SU dfiete C ri S whether any substance made in imitation or semblance 
ous - of butter, and intended for human consumption, contains 

ingredients deleterious to the public health; but in case 
of doubt or contest his decisions in this class of cases may 
Appeal. be appealed from to a board hereby constituted for the 
purpose, and composed of the Surgeon-General of the 
Army, the Surgeon-General of the Navy, and the Com¬ 
missioner 1 of Agriculture; and the decisions of this 
board shall be final in the premises. 


x Now Secretary. 





71 


SAMPLES FOR EXAMINATION. 

In case any substance declared by any collector of in- e xamtaatTon. fo: 
ternal revenue to be oleomargarine and liable to tax is 
claimed by the owner to be butter or some other substance 
not liable to tax, the collector will submit a sample of the 
article for the decision of the Commissioner of Internal 
Revenue, as provided in the above-quoted section 14. 

Each of such samples must weigh not less than one size. 
pound , and must be taken in presence of an internal-rev¬ 
enue officer. And in case search is to be made for un¬ 
usual coloring matter in oleomargarine, at least 2 pounds 
should be sent. (For more specific instructions relating 
to samples, see Circular No. 692.) The sample may be How put up. 
put up in wide-mouthed tin, porcelain, or glass vessels. 

Labels (Form 311) are furnished collectors upon appli¬ 
cation to Commissioner of Internal Revenue. It must 
be marked and numbered with marks and numbers to 
correspond with those on the package from which the 
sample is taken, and in case the package is without proper 
identifying marks they will be placed upon the package 
by the collector. The sample, properly sealed and 
marked, will be forwarded by the collector to the Com¬ 
missioner of Internal Revenue, under whose directions 
it will be subjected to such physical and chemical tests as 
may be necessary to determine its character. 

The decision of this office as to any substance can not, 
of course, afford any indication as to what its decision 
will be as to another substance, although such other sub¬ 
stance may be marked and labelled as was the substance 
submitted to this office. 

Each sample package must he accompanied hy a letter tr ^|^ i t tt e J ° e f 
of transmittal , giving a description of sample in detail., Quired. 
stating that it is forwarded for the decision of the Com¬ 
missioner of Internal Revenue under section H of the * 
act of August £, 1886. 

The decision of the Commissioner, when rendered, will 
be forwarded to the collector, and if it is favorable to the 
claimant, the collector will release the goods. If the 
Commissioner’s decision sustains the view of the collector, 
the proceedings will be in accordance with so much of 
the requirements of section 15 of the act as are applicable. 


UNSTAMPED OLEOMARGARINE AND OLEOMARGARINE CON¬ 
TAINING DELETERIOUS SUBSTANCES TO BE FORFEITED. 

Section 15 provides as follows: 

Forfeiture of That all packages of oleomargarine subject to tax under 
omar^arfneand this act that shall be found without stamps or marks as 
containing 1 def- h ere i n provided and all oleomargarine intended for human 
eterious s u b - consumption which contains ingredients adjudged, as. 

hereinbefore provided, to be deleterious to the public 
health, shall be forfeited to the United States. Any 
person who shall willfully remove or deface the stamps, 
marks, or brands on packages containing oleomargarine 
taxed as provided herein shall be guilty of a misdemeanor, 
and shall be punished by a fine of not less than one hun¬ 
dred dollars nor more than two thousand dollars and by 
imprisonment for not less than thirty days nor more 
than six months. 

In case the substance is detained by the collector as 
containing ingredients deleterious to the public health, 
samples may be forwarded to the Commissioner, as in 
cases involving the question of tax, and may be disposed 
of in the same manner. If, however, the claimant is un¬ 
willing- to accept the decision of the Commissioner, he 

Appeal. may, in this class of cases, appeal under the law to a 
board composed of the Surgeon-General of the Army, 
the Surgeon-General of the Navy, and the Secretar}^ of 
Agriculture, whose decision in the matter is declared by 
the law to be final. 

Notice of appeals must be given to the collector at once 
upon the receipt of the decision of the Commissioner of 
Internal Revenue. 

The collector will immediately forward the claimant’s 
appeal to the Commissioner, who will, without delay, 
transmit the appeal to the board of appeals, accompanied 
by the samples and all papers in the case. 

The decision of the board of appeals will be transmitted 
to the claimant through the Commissioner and collector of 
internal revenue. 

Disposal o f Oleomargarine forfeited to the United States bv reason 

oleomargarine « , n J 

forfeited. or the nonpayment ot the tax may be sold by the officer 
having charge of the same, subject to the payment of the 
tax. And such officer will purchase, out of the proceeds 
of the sale, the proper tax-paid stamps, which he shall 
affix to the packages and cancel. And the regulations 
governing the stamping, branding, and marking of for- 


73 


feited distilled spirits sold by United States marshals, so 
far as applicable, are hereby made to apply to the sale of 
oleomargarine forfeited to the United States. 

When oleomargarine which has been seized for viola¬ 
tions of the internal-revenue laws has become so deterio¬ 
rated that it will not bring a price equal to the tax and 
the expenses chargeable to such seizure, the collector, upon 
application to the Commissioner of Internal Revenue, will 
be authorized to dispose of the same as grease, after mix¬ 
ing therewith coal oil or some similar substance which 
will prevent its use as a food product. If such destroyed 
article is then sold the proceeds will be applied to the 
payment of accrued expenses, and any residue of expenses 
over receipts will be paid to the collector through his 
expense account; and in case the property is destroyed 
and no money received therefrom the entire expense at¬ 
tending the seizure will be claimed by the collector in like 
manner. 

In case it shall appear that any abandoned, condemned, 
or forfeited oleomargarine when offered for sale will not 
bring a price equal to the tax due and payable thereon, 
stamps for such goods may be used by the collector mak¬ 
ing such sale, wdthout making any payment for such 
stamps so used, and any collector using such stamps in the 
manner described, on presenting vouchers satisfactory to 
the Commissioner of Internal Revenue, shall be allowed 
credit for the same in settling his stamp account with the 
Department, as authorized by Sec. 3369, R. S. But if 
such abandoned, condemned, or forfeited oleomargarine 
is unfit for human consumption such goods shall not be 
sold for consumption in the United States; and upon ap¬ 
plication made to the Commissioner of Internal Revenue 
the collector will be authorized to destroy the oleomar¬ 
garine so abandoned, condemned, or forfeited. 

All oleomargarine forfeited to the United States as oIe ^ a < J.J“ r ^g 
being deleterious to the public health may also be sold, branded - 
but each package so sold, before delivery to the purchaser, 
must be marked or branded, in letters not less than 1 inch 
square, with the words— 

Condemned as unfit for human consumption and dele¬ 
terious to the public health.” 


74 


Microscopes 
as test for ole¬ 
omargarine. 


Description 
of microscope. 


Method of 
using the mi¬ 
croscope. 


Appea ranee 
of melted fats. 


THE USE OF THE MICROSCOPE AS A TEST FOR OLEOMARGARINE. 

The difference between fresh, genuine, unmelted butter 
and oleomargarine can be readily detected by a micro¬ 
scope with the aid of polarized light. 

Butter which has been melted or renovated sometimes 
shows crystals under polarized light, but one who has 
had experience in the use of the microscope will rarely 
be misled by this fact. 

A microscope is furnished to collectors of internal reve¬ 
nue suitable for use by local officers in the field. 

DESCRIPTION OF MICROSCOPE AND ATTACHMENTS. 

The instrument consists, first of a large bell-shaped 
base and tube attached to this base, into which tube fits 
another or draw tube, containing at the outer end an 
eye-piece, at the inner end an objective, and between the 
eye-piece and objective is a Nicols prism or analyzer. 
There is a second Nicols prism or polarizer, which is to 
be attached to the base after the focus has been obtained. 

METHOD OF USING THE MICROSCOPE AND ATTACHMENTS. 

The instrument will be used in the following manner: 
With the point of a penknife place a small portion of the 
fresh sample taken from the inside of the mass on the 
middle of one of the glass slides; place a cover on it; press 
the cover firmly down on the slide with the blunt end of a 
pencil, care being taken to make the object sufficiently 
translucent, and insert the slide, with cover toward ob¬ 
jective, in the slot prepared for it in the mouth of the 
instrument; press each end of the glass slide down gently 
and turn it slightly so that the corners will be held in 
place by the spring pressing against the back of the base, 
care being taken to get the object in front of the objective; 
pull out the drawtube about three-fourths of an inch and 
look through the instrument held toward the direct light 
from a window or a gas or lamp flame placed within a 
short distance; slide the tube slowly in or out until the 
object is sharply defined; then attach the polarizer to 
the base and, holding the instrument toward the light, 
rotate the lens (which is provided with a milled head for 
the purpose) until the field of view is dark. If melted 
fats are present, the field will be illuminated with bright 
white particles; if not, it will be uniformly dark. 


75 


Where nothing is seen but the characteristic globules, 
the granular masses of curd and the cubical crystals of 
salt, even when the polarizer is turned so that the field is 
lightest, the sample can at once be passed as genuine 
butter. 

When there is any doubt whatever in regard to the 
results of the microscopic examination of a suspected 
sample, it should be submitted to the Commissioner of 
Internal Revenue for a thorough chemical analysis. This 
should also be done where legal proceedings are likely?' to 
be based upon the character of the sample, as a chemical 
analysis will afford more conclusive proof than the 
microscopic test. 

INSTRUCTIONS TO COLLECTORS CONCERNING THE RECEIPT 

AND CARE OF MICROSCOPES AND THE METHOD OF 

ASCERTAINING TAX LIABILITY WITH THE AID OF THE 

INSTRUMENTS. 

Every collector of internal revenue will, if possible, 
whenever the inquiry is for the purpose of finding oleo¬ 
margarine on which the tax has not been paid, furnish 
his deputy with one of the microscopes described in these 
regulations. 

Upon receiving the microscope the deputy will receipt 
therefor in duplicate on Form 227, one copy to be deliv¬ 
ered to the collector and one copy to be mailed by the 
deputy to the Commissioner of Internal Revenue. The 
form of receipt is as follows: 

Form 227. 

UNITED STATES INTERNAL REVENUE. 

Receipt for Internal Revenue Microscope and Accessories. 

[To be executed in duplicate; the “original” to be delivered to 
the collector and the “duplicate” mailed to the Commissioner of 
Internal Revenue.] 

[original.] 

Received from-, collector of internal rev- m 0 r 

enue of the- district of-, one internal revenue 

microscope No. -, with polarizing attachments; also 







76 


- glass slides, —— glass covers, and —-— gummed 

labels, all in good order and securely packed in a suitable 

case; also-Memorandum Book No. 63, and-blank 

reports, Form 228. 

Deputy Collector. 

Dated at-, this-day of-, 190—. 

Exam i n a - It is the desire of this office that the microscopes in the 

tions with mi- . 

croscopes by bands of collectors of internal revenue shall be in constant 

deputy collect- 

ors. use. Quarterly reports of collectors on Form No. 246 

should show some examinations by the microscope during 
every quarter. 

The collector, therefore, who delivers one of these in¬ 
struments to a deputy collector will direct the deputy, as 
soon as he is familiar with the workings of the instru¬ 
ment, to proceed through his division, and to direct his 
inquiries and examinations to products exposed for sale 
as or for butter, with a view to ascertain whether they 
are really oleomargarine, and hence to determine the 
liability of the persons offering the same for sale to the 
payment of special tax as dealers. 

He should examine all unstamped goods in the hands of 
dealers in oleomargarine and in the hands of other deal¬ 
ers to whom oleomargarine has been consigned. He will 
also examine the stocks of all butter dealers who consent 
to such examination. If anyone objects, he will imme¬ 
diately report the fact to the collector in writing, and 
then at once proceed to the next place to be examined. 

book ei to l be n ke^t ^s deputy collector proceeds with the examination, 

lector puty co '" no * e resu ^ s m a memorandum book (Book No. 63) 

as to each package, giving such particulars as will enable 
him to prepare his report on Form 228. It contains 100 
pages, each of which is arranged in the following form: 











77 


Memorandum of each package examined this —— day 

of-, 190—, with Int. Key. Microscope No. ——, on 

premises of-, No.-street, town, 

or city of-, county of-and State of-: 



Upon completing his examination, or, at the close of Report of ex- 
each day, if more than one day is required, the deputy^p^y coi- 
collector will make up separate reports on Form 228, in 
duplicate, of examinations made at each place of business, 
etc., one copy to be furnished to the collector and one to 
the Commissioner of Internal Revenue. 

Form 228 mentioned is a single sheet, ruled and printed 
to agree with the form observed in the memorandum book 
above described. 

In case the deputy collector finds any unstamped article when ^goods 
which appears from his examination to be oleomargarine, tained. 
and the holder asserts that it is not oleomargarine, the 
officer will detain it, and immediately submit the matter 
to the collector, with sample, who will also examine it. 

If the owner will not consent to detention for a period of 
time sufficient for submission of the matter to the col¬ 
lector, then the deputy will seize. If the collector agrees 
with the deputy in the matter and the holder persists in 
his original assertion, he may appeal to the Commissioner 
in the manner provided by law. 

Upon furnishing the collector with his report on Form 
228 the deputy collector will also return the instrument, 






















78 


with accompanying slides and covers, first, however, care¬ 
fully cleaning with soap and, warm water all slides con¬ 
taining samples of pure butter. 

Microscopes The collector will, upon the return of the instrument, 
to be in con- # 7 . x 

stant use. immediately reissue it to a deputy in charge of another 
division in his district, and, unless otherwise directed by 
the Commissioner of Internal Revenue, will pass it from 
one deputy to another until his district is thoroughly can¬ 
vassed. He will then promptly notify the Commissioner 
of Internal Revenue of the fact, in order that, if needed, 
the instrument may, without delay, be forwarded to the 
collector of another district. 

SAMPLES OF SUSPECTED BUTTER FOR CHEMICAL ANALYSIS. 

With samples of suspected butter , where the content of 
moisture is of chief importance, greater care must be 
exercised in obtaining an average sample (about 1 pound) 
of the package. If the material is in bulk, portions 
should be taken from several different places; if in small 
prints or rolls, the whole should be taken, if possible, and 
transferred immediately to the vessel in which it is to be 
shipped, which must be water-tight. All wrappings of 
an} 7 kind on the sample should be removed before the 
sample is placed in the vessel, and nothing of any kind 
should be placed in the receptacle which might absorb 
the moisture, such as paper, etc. The receptacle must be 
clean and dry. 

Glass fruit jars with tops that can be screwed down 
upon rubber rings or tin fruit cans with tops that can be 
readily soldered on are satisfactory and readily obtain¬ 
able. 


IMPORTED OLEOMARGARINE. 

Section 10 of the act of August 2, 1886, provides as 
follows: 

That all oleomargarine imported from foreign coun- Tax on im- 
tries shall, in addition to any import duty imposed on the^aSne oleomar ' 
same, pay an internal-revenue tax of fifteen cents per 
pound, such tax to be represented by coupon stamps as in 
the case of oleomargarine manufactured in the United 
States. The stamps shall be affixed and canceled by the Affixing 
owner or importer of the oleomargarine while it is in the stamps - 
custody of the proper custom-house officers; and the oleo¬ 
margarine shall not pass out of the custody of said officers 
until the stamps have been so affixed and canceled, but 
shall be put up in wooden packages, each containing not 
less than ten pounds, as prescribed in this act for oleomar¬ 
garine manufactured in the United States, before the 
stamps are affixed; and the owner or importer of such 
oleomargarine shall be liable to all the penal provisions of 
this act prescribed for manufacturers of oleomargarine 
manufactured in the United States. Whenever it is neces- Warehousing 
sary to take any oleomargarine so imported to any place ISfiwfne. 0160 ' 
other than the public stores of the United States for thg 
purpose of affixing and canceling such stamps, the col¬ 
lector of customs of the port where such oleomargarine is 
entered shall designate a bonded warehouse to which it 
shall be taken under the control of such customs officer as 
such collector may direct; and every officer of customs 
who permits any such oleomargarine to pass out of his 
custody or control without compliance by the owner or penalty for 
importer thereof with the provisions of this section relat-^g^^g 11 ^ 
ing thereto, shall be guilty of a misdemeanor and shall be cers. 
lined not less than one thousand dollars nor more than five 
thousand dollars, and imprisoned not less than six months 
.nor more than three years. Every person who sells or Penalty for 
offers for sale any imported oleomargarine, or oleomarga- stamped. 1 * not 
line purporting or claimed to have been imported, not put 
up in packages and stamped as provided by this act, shall 
be fined not less than five hundred dollars nor more than 
five thousand dollars, and be imprisoned not less than six 
months nor more than two years. 

IMPORTED OLEOMARGARINE NOT TO BE STAMPED UNLESS 
WITHDRAWN FOR CONSUMPTION. 

Oleomargarine imported from foreign countries is not^No^to^be 
required to have the internal-revenue stamps affixed ^nsumptfoi/or 
thereto and canceled unless it is withdrawn from the cus- sale * 
tom-house for consumption or sale in the United States. 

(79) 


80 


Imported 
goods w ith - 
drawn for con¬ 
sumption. 


No label or 
caution notice 
required. 


Upon oleomargarine of the manufacture of the United 
States once exported free of tax and afterwards returned 
from the foreign port to the United States, there shall be 
paid a duty equal to the internal-revenue tax imposed 
upon oleomargarine of the class to which such returned 
goods properly belong. (See Treas. Dec. No. 669, dated 
June 16, 1903.) 

Section 10 of the act of August 2, 1886, provides that 
all oleomargarine imported from foreign countries shall 
have the proper stamps affixed and canceled by the owner 
or importer thereof while it is in the custody of the 
proper custom-house officers. Stamps for this purpose 
will be sold to the owners or consignees of such imported 
oleomargarine by the collector of internal revenue for the 
district in which the custom-house is situated, upon the 
requisition of the proper custom-house officer having the 
custody of such oleomargarine. The requisition will be 
substantially in the following form: 

Office of the Collector of Customs, 

-, ——, 190- 

Sir: This is to certify that the following-described 
oleomargarine, viz: 


Marks. 

No. of packages. 

Import vessel. 

Date of importation. 

Pounds. 







is now in my custody, and you are therefore requested to 
sell and deliver to - -, the owner or con¬ 

signee thereof, the proper kind and quantity of stamps 
to stamp the same, as required by law. 

(Signed)-, Collector. 

(Collector’s seal.) 

To-—, Esq., 

Collector , —— District of -. 

IMPORTED GOODS WITHDRAWN FOR CONSUMPTION. 

All oleomargarine imported from foreign countries, in 
addition to import duties, is made liable to an internal- 
revenue tax of 15 cents per pound, and to have the appro¬ 
priate stamps affixed thereto and canceled. 

In case the tax is not paid by stamp at the time and in 
the manner provided by law, its collection may be en¬ 
forced by assessment. 

Imported oleomargarine is not required to have affixed 
to each box or other package a label and caution notice as 
provided in the case of domestic manufactured oleomar¬ 
garine. 


















COLLECTOR’S RECORD AND MONTHLY AND 
QUARTERLY RETURNS. 

Book 62. 

Each collector will keep a record on book No. 62 of all Book 62. 
oleomargarine produced in his district, the quantity 
removed from manufactories tax paid, or for export, and 
of the quantity lost or destroyed in factory, likewise of 
the stock remaining on hand at the close of the month in 
the case of each factory. 

The number of pounds to be entered in this book p 0 u n ds X tobeen e 
should be the number of taxable pounds. For instance, a tered on books, 
package containing 10J pounds, actual weight, should be 
entered as containing 11 pounds, because under the law 
imposing the tax the half pound is regarded as a whole 
pound. 

Form 516. 

Collector’s monthly account of oleomargarine not arti- Form 51f> - 
ficially colored, taxed at rate of one-fourth of a cent per 
pound. 

Each collector will render to the Commissioner of 
Internal Revenue a monthly return on this form showing 
the quantity of oleomargarine not artificially colored pro¬ 
duced, withdrawn tax paid, for export, and the quantity 
lost or destroyed, likewise the quantity exported and 
accounted for, and the stock remaining on hand at the 
close of the month in the case of each factory. 

The report must be dated and signed by the collector. 

Form 517. 

Collector’s monthly account of oleomargarine artifi- Form5i7. 
daily colored, taxed at rate of 10 cents per pound and is 
similar to Form 516. 

(81) 

6153—07-6 


82 


Form 500. 


Form 502. 


Form 246. 


Form 7281. 


Form 500. 

Collector's Monthly Report of Persons Who Pay Special 

Tax as Dealers in Oleomargarine not Artificially Col¬ 
ored. 

On the first business day of each month each collector 
will cause to be prepared, with great care , a return on 
Form 500, showing the names of all persons, firms, cor¬ 
porations, etc., who paid special tax in his district during 
the preceding month as dealers in oleomargarine not 
artificially colored. 

The report will show, in addition, the names of such 
special-tax payers, the place of business, class of dealer 
(wholesale or retail), and the period for which the tax 
was paid in each case. All transfers of special-tax 
stamps, except in cases where stamps are made out in 
general terms for a market house, should likewise be 
reported on proper form for the month in which such 
transfers take place. 

The report must be dated and signed by the collector. 

Form 502. 

Collector’s monthly report of persons who pay special 
tax as dealers in oleomargarine artificially colored. 
Otherwise same as Form 500. 

Form 246. 

Collector's Quarterly Return Relative to Internal Revenue 

Microscopes. 

A quarterly report must be made by each collector of 
internal revenue of the number of examinations’ made 
with the internal revenue microscope in his district, by 
himself or his deputies, of articles resembling butter and 
calculated or intended to be sold as or for butter. The 
report must also show the condition of the microscopes 
and accessories in the collector’s district. 

Form 7281. 

This is a form for use in the office of the Commissioner 
of Internal Revenue, and will not be employed by col¬ 
lectors excepting in the manner hereinafter pointed out. 

Upon this form an abstract is prepared of all sales to 
persons who do not appear from the records of the office 


83 


of the Commissioner of Internal Revenue to have paid 
special tax as dealers in oleomargarine not artificially col¬ 
ored for the special-tax year in which the sale was made, 
and whose liability thereto it is desired to ascertain. The 
abstracts thus prepared are sent to collectors, who w r ill 
cause sufficient investigation to be made to determine the 
liability of the persons named to the special tax. These 
investigations must be made and the results thereof 
reported to the Commissioner w-ith as little delay as 
possible. The reports should be made upon the abstract 
sheets, on the lines provided for collectors’ use, and must 
be specific with respect to each name, thus: 

Note in red ink on the line with each name the word 
“ hotel,” “ hospital,” “ restaurant,” or “ for ow T n consump¬ 
tion,” etc., as the case may be. 

If any person named in the abstracts is found to be a 
dealer in oleomargarine not artificially colored, enter on 
the line with the name the letters “ W. D.” for wholesale 
dealer and “ R. D.” for retail dealer, as the case may be, 
and on the back of the form make a statement of the steps 
taken to secure payment of the tax and penalties and give 
the date when the tax became due. 

If after thoroughly investigating a case the collector is 
doubtful as to the liability of the person to special tax he 
will at once fully report the facts to the Commissioner of 
Internal Revenue. 

Collectors must report promptly on Abstracts, Forms 
No. 7281 and 565, wffien received regarding purchase of 
oleomargarine and liability of consignee. Abstracts re¬ 
turned to this Bureau by collectors with the information 
“ that parties can not be found ” will not be accepted 
without the information that a thorough investigation has 
been made at post-office, freight and express offices, and 
city directory for addresses of consignees. 

Office Form No. 565. 

Abstract of sales of oleomargarine tax paid at rate of 
10 cents a pound. Same as Form 7281, only used for sales 
of oleomargarine tax paid at 10 cents per pound. 

Form No. 7285. 

Calling for supplemental report of oleomargarine spe¬ 
cial taxes paid. This form is used in the office of the 
Commissioner of Internal Revenue. 


Notations by 
collect ors on 
Form 7281. 


Form 565. 


Form 7285. 


84 


Form 299. 


Office Form No. 299 . 

Calling for missing oleomargarine reports. This form 
is used in the office of the Commissioner of Internal 
Revenue. 


BLANK FORMS FOR OLEOMARGARINE. 

Collectors will be furnished with the following blank 
forms upon proper requisition therefor: 

Form No. 


33_Sureties’ affidavit to accompany oleomargarine manu¬ 

facturer’s and exporter’s bond. 

213 _Oleomargarine manufacturer’s notice. 

214 _Oleomargarine manufacturer’s bond. 

215 _Oleomargarine manufacturer’s inventory. 

216 _Oleomargarine manufacturer’s monthly return. 

217 _Oleomargarine wholesale dealer’s monthly return. 

218 _Oleomargarine manufacturer’s order for stamps. 

222 _Collector’s monthly report of oleomargarine stamps re¬ 

ceived, sold, and on hand. 

223 _Collector’s requisition for stamps for oleomargarine. 

227 _Deputj^ collector’s receipt for microscope and acces¬ 

sories. 

228 _Deputy collector’s report of examinations made with 

microscope. 

246_Collector’s quarterly return relative to microscopes. 

311-Label for 1-pound sample of product suspected of being 

oleomargarine. 

500-Report of persons who paid special tax as dealers in 

oleomargarine not artificially colored. 

502-Report of persons who paid special tax as dealers in 

oleomargarine artificially colored. 

516 -Collector’s monthly account, oleomargarine not artifi¬ 

cially colored. 

517 -Collector’s monthly account, oleomargarine artificially 

colored. 


Form A (Cat. No. 549). Oleomargarine exporter’s bond (see 
Regs. No. 29). 

Form B (Cat. No. 550). Application for withdrawal of oleomar¬ 
garine for export (see Regs. No. 29). 

BLANK BOOKS FOR OLEOMARGARINE. 

Collectors will be furnished Avith the following blank 

c“*' 

books upon proper requisition therefor: 

Book No. 


62 -Collector’s oleomargarine record. 

63 -Deputy collector’s memorandum of examinations with 

microscope, 





















REGULATIONS CONCERNING ADULTERATED 
BUTTER. 

(Definitions.) 

AN ACT defining butter, also imposing a tax upon and regulating 
the manufacture, sale, importation, and exportation of oleomar¬ 
garine. Approved, August 2, 1886. 

Be it enacted by the Senate and House of Representa¬ 
tives of the United States of America in Congress assem¬ 
bled ', That for the purpose of this act the word “ butter ’’fined. 1 tei de 
shall be understood to mean the food product usually 
known as butter, and which is made exclusively from 
milk or cream, or both, with or without common salt, and 
with or without additional coloring matter. 

Act of May 9, 1902: 

Sec. 4. That for the purpose of this act “ butter ” is 
hereby defined to mean an article of food as defined in 
“An act defining butter, also imposing a tax upon and 
regulating the manufacture, sale, importation, and ex¬ 
portation of oleomargarine,” approved August second, 
eighteen hundred and eighty-six; that “ adulterated but- b ■^J lt |' fl a n t e ^ fl 
ter ” is hereby defined to mean a grade of butter produced 
by mixing, reworking, rechurning in milk or cream, re¬ 
fining, or in any way producing a uniform, purified, or 
improved product from different lots or parcels of melted 
or unmelted butter or butter fat, in which any acid, alkali, 
chemical, or any substance whatever is introduced or used 
for the purpose or with the effect of deodorizing or re¬ 
moving therefrom rancidity, or any butter or butter fat 
with which there is mixed any substance foreign to butter 
as herein defined, with intent or effect of cheapening in 
cost the product, or any butter in the manufacture or 
manipulation of which any process or material is used 
with intent or effect of causing the absorption of ab¬ 
normal quantities of water, milk, or cream; that u pro-renovated 8 Vt- 
cess butter ” or “ renovated butter ” is hereby defined to ter defined, 
mean butter which has been subjected to any process by 
which it is melted, clarified, or refined and made to re¬ 
semble genuine butter, always excepting “adulterated 
butter ” as defined by this act. 


( 85 ) 


86 


Three classes 
of butter. 


First class. 


Second class. 


Third class. 


The evident intent of this section is to define all prod¬ 
ucts properly known or designated as butter, and to sepa¬ 
rate them into three classes for the purposes of the act. 
The first paragraph of the section adopts the definition of 
“ butter ” used in the act of August 2, 1886, as being 
“ The food product usually known as butter, which is 
made exclusively from milk or cream, or both, with or 
without common salt, and with or without additional 
coloring matter.” 

All butter which does not come under the terms of this 
definition , therefore , necessarily falls into one of the other 
tivo classes , upon which a tax is laid . 

The next paragraph of the section defines “ adulterated 
butter,” the product which bears the higher rate of tax, 
in a long clause, which is evidently intended to describe 
with some particularity well-defined forms of adultera¬ 
tion as examples or guides. 

Such are, first , “ A grade of butter produced by mixing, 
reworking, rechurning in milk or cream, refining, or in 
anyway producing a uniform, purified, or improved 
product from different lots or parcels of melted or un¬ 
melted butter or butter fat, in which any acid, alkali, 
chemical, or any substance whatever is introduced or used 
for the purpose or with the effect of deodorizing or 
removing therefrom rancidity; ” second , “Any butter or 
butter fat with which there is mixed any substance for¬ 
eign to butter as herein defined, with intent or effect of 
cheapening in cost the product, or any butter in the manu¬ 
facture or manipulation of which any process or material 
is used with intent or effect of causing the absorption of 
abnormal quantities of water, milk, or cream.” 

Briefly stated, the first instance described reworked or 
renovated butter to which any substance has been added 
to “ deodorize or remove rancidity;” the second instance 
describes butter cheapened in cost by admixtures; and 
the third instance, made to “ contain abnormal quantities 
of water, etc.” (So-called emulsified or milk-blended 
butter.) 

A third class of butter, defined as process or renovated 
butter, is the grade which has been subjected to any 
process by which it is melted, clarified, or refined and 
made to resemble genuine butter,” always excepting 
“ adulterated butter.” The regulations concerning proc¬ 
ess or renovated butter are to be found on pages 95 to 106, 
inclusive. 


87 


ADULTERATED BUTTER DEFINED. 

The definition of adulterated butter as contained in the Adulterated 
act of May 9, 1902, embraces butter in the manufacture defined, 
of which any process or material is used whereby the 
product is made to “ contain abnormal quantities of water, 
milk or cream,” but the normal content of moisture per¬ 
missible is not fixed by the act. This being the case it 
becomes necessary to adopt a standard for moisture in 
butter, which shall in effect represent the normal quan¬ 
tity. It is therefore held that butter having 16 per cent 
or more of moisture contains an abnormal quantity and is 
classed as adulterated butter. 

LADLED BUTTER. 

The product commonly known as “ ladled ” butter is a Ladled butter 
grade of butter made by mixing and reworking different 
lots or parcels of butter so as to secure a uniform product. 

This is known by various names to the trade. This prod¬ 
uct will not be held to be renovated butter unless in addi¬ 
tion to being reworked it is melted and refined. It will 
not be held to be adulterated butter unless materials for¬ 
eign to statutory butter are added to it or it is made to 
contain 16 per cent or more of moisture. Persons who 
engage in the production of “ ladled ” butter as a business 
will be held liable to special tax as manufacturers of reno¬ 
vated butter if they melt and refine their product, and to 
special tax as manufacturers of adulterated butter if they 
use in it substances foreign to statutory butter or produce 
a butter having 16 per cent or more of water. Persons 
who sell “ ladled ” butter which is adulterated will be 
liable to special tax as dealers in adulterated butter. 

CREAMERY BUTTER. 

Grades of butter produced in large establishments di- bi ^' e ® a m e r y 
rectly from milk or cream are known as creamery butter. 

The manufacturers of this butter will not be held liable to 
special tax unless they involve their product in one or the 
other rate of tax as set forth above with reference to 
“ ladled ” butter. The owners of such establishments 
must see that their product is statutory butter, and they 
must exercise particular care with reference to its water 
content. 


88 


WHEN PRODUCT IS OLEOMARGARINE. 


Addition of The addition of small quantities of a foreign fat, lard, 
makes 1 ?ieoma?- or oil to butter will render the product liable to tax as 
oleomargarine, and the producer thereof to special tax as 
manufacturer of oleomargarine. 


WHEY BUTTER. 

whey butter Whey butter is classed as adulterated butter when it 
ifined. # J 

contains 16 per cent or more of moisture. 

SWEET BUTTER. 

sweet butter. “Sweet” or unsalted butter is made and sold to some 
extent, especially in the large cities. When made by re¬ 
working country butter it must necessarily fall under the 
classification of “ renovated butter,” as the salt can not be 
removed except by a process of melting and separating. 
If the product reaches or exceeds the limit of 16 per cent 
of water content, or if materials foreign to butter are 
added to it for the purpose or with the effect of removing 
rancidity or of cheapening the product, it will be classed 
as “ adulterated butter,” or as oleomargarine if foreign 
fats are added. 

SPECIAL TAXES. 


Special taxes are imposed as follows: 

Definition of Manufacturers of process or renovated butter shall pay 
of an process r or fifty dollars per year and manufacturers of adulterated 
adulterated butter shall pay six hundred dollars per year. Every 
butter. person who engages in the production of process or reno- 

.Vated butter or adulterated butter as a business shall be 
considered to be a manufacturer thereof, 
wholesale Wholesale dealers in adulterated butter shall pay a tax 
terated butter, oi tour hundred and eighty dollars per annum, and 
retail dealers in adulterated butter shall pay a tax of 
defined! 1 dealer forty-eight dollars per annum. Every person who sells 
adulterated butter in less quantities than ten pounds at 
one time shall be regarded as a retail dealer in adulterated 
butter. 

adulterated -^ vei T P erson who sells adulterated butter shall be re¬ 
butter defined! 1 garded as a dealer in adulterated butter. And sections 
app^icaTu ? thirty-two hundred and thirty-two, thirty-two hundred 
3232, 3 2 33’, and thirty-three, thirty-two hundred and thirty-four, 
3 23 6’, 3237’ thirty-two hundred and thirty-five, thirty-two hundred 
3 240 ’ ill?’ an d thirty-six, thirty-two hundred and thirty-seven, 
3243 ’ of ~Re-thirty-two hundred and thirty-eight, thirty-two hundred 
vised statutes. an( j thirty-nine, thirty-two hundred and forty, thirty-two 
hundred and forty-one, and thirty-two hundred and 


89 


forty-three of the Revised Statutes of the United States 
are, so far as applicable, made to extend to and include 
and apply to the special taxes imposed by this section and 
to the person upon whom they are imposed. 

That every person who carries on the business of a Penalties for 
manufacturer of process or renovated butter or adul- special ta°x. pay 
terated butter without having paid the special tax there¬ 
for, as required by law, shall, besides being liable to the 
payment of the tax, be fined not less than one thousand 
and not more than five thousand dollars; and every per¬ 
son who carries on the business of a dealer in adulterated 
butter without having paid the special tax therefor, as 
required by law, shall, besides being liable to the payment 
of the tax, be fined not less than fifty nor more than five 
hundred dollars for each offense. 

(For other instructions relative to Special Taxes, see 
pages 26, 50, and 61 of the foregoing regulations.) 

NOTICES, INVENTORIES, BONDS, ETC. 

Section 4 of said act of May 9, 1902, further provides: 

That every manufacturer of process or renovated but- Notices, in¬ 
ter or adulterated butter shall file with the collector of in- bo D nds es to a be 
ternal revenue of the district in which his manufactory is flled - 
located such notices, inventories, and bonds, shall keep 
such books and render such returns of material and prod¬ 
ucts, shall put up such signs and affix such number of his 
factory, and conduct his business under such surveillance 
of officers and agents, as the Commissioner of Internal 
Revenue, with the approval of the Secretary of the Treas¬ 
ury, may by regulation require. But the bond required 
of such manufacturer shall be with sureties satisfactory to 
the collector of internal revenue and in a penal sum of 
not less than five hundred dollars; and the sum of said 
bond may be increased from time to time and additional 
sureties required at the discretion of the collector or under 
instructions of the Commissioner of Internal Revenue. 

Section 6 of said act also provides: 

That wholesale dealers in oleomargarine, process, reno- ke ^ 00l f nd t0 r b e ® 
vated, or adulterated butter shall keep such books and turns made. 16 ' 
render such returns in relation thereto as the Commis¬ 
sioner of Internal Revenue, with the approval of the Sec¬ 
retary of the Treasury, may, by regulation, require; and 
such books shall be open at all times to the inspection of 
any internal-revenue officer or agent. And any person 
who willfully violates any of the provisions of this section 
shall for each such offense be fined not less than fifty dol¬ 
lars and not exceeding five hundred dollars, and impris¬ 
oned not less than thirty days nor more than six months. 

To carry into effect these provisions of the act, the fore¬ 
going regulations respecting the filing of notices, bonds, 
and inventories; the keeping of books and rendering 



90 


Forms for 
adulterated 
and renovated 
butter. 


returns; the numbering of factories and the placing of 
signs on such factories (in the case of manufacturers of 
oleomargarine), and the keeping of books and making 
returns (in the case of wholesale dealers in that article), 
including the duties of officers in relation thereto, are, so 
far as applicable, hereby extended and made to apply to 
the business carried on respectively by manufacturers of 
and wholesale dealers in adulterated butter, and manu¬ 
facturers of process or renovated butter, as defined in 
said act. 

The records and returns required in such cases will be 
numbered and designated as follows: 

Form No. 


407_Adulterated butter manufacturer’s monthly return 

(outside). 

497 _Adulterated butter manufacturer’s monthly return 

(inside). 

498 _Monthly return of wholesale dealer in adulterated but¬ 

ter (outside). 

498 _Monthly return of wholesale dealer in adulterated but¬ 

ter (inside). 

499 _Monthly return of manufacturer of renovated butter 

(outside). 

499 _Monthly return of manufacturer of renovated butter 

(inside). 

501_Report of persons who paid special tax as dealers in 

adulterated butter. 

504 _Collector’s monthly return of adulterated butter ac¬ 

count. 

505 _Notice by manufacturer of adulterated butter. 

500 _Bond of manufacturer of adulterated butter. 

507 _Notice by manufacturer of renovated butter. 

508 _Bond of manufacturer of renovated butter. 

509--,_Inventory manufacturer of renovated butter. 

510 _Inventory manufacturer of adulterated butter. 

511 _Form of book to be kept by manufacturer of renovated 

butter. 

512 _Form of book to be kept by manufacturer of adul¬ 

terated butter. 

513 _Form of book to be kept by wholesale dealer in adul¬ 

terated butter. 

515_Collector’s monthly return of renovated butter account. 


Form A (Cat. No. 549) Adulterated butter export bond. 

Form B (Cat. No. 550) Application for withdrawal of adulter¬ 
ated butter for export. 

Note. —As “ adulterated ” butter and “ process or renovated ” 
butter are regarded, under the law, as distinct articles, and are 
subject to a different rate of tax, manufacturers of either or both 
of such articles will be required to keep separate records and to 
render separate returns for each of said articles. Wholesale 
dealers in adulterated butter are also required to keep books’and 
make returns. 




















91 


MARKING, BRANDING, AND STAMPING PACKAGES CONTAIN¬ 
ING ADULTERATED BUTTER. 1 

Section 4 of said act of May 9, 1902, further provides: 

That all adulterated butter shall be packed by the branding, 1 etc.,’ 
manufacturer thereof in firkins, tubs, or other wooden 5,? t tir te pack d - 
packages not before used for that purpose, each contain- ages, 
ing not less than ten pounds,* and marked, stamped, and 
branded as the Commissioner of Internal Revenue, with 
the approval of the Secretary of the Treasury, shall pre¬ 
scribe; and all sales made by manufacturers of adulter¬ 
ated butter shall be in original stamped packages. 

Dealers in adulterated butter must sell only original 
or from original stamped packages, and when such origi¬ 
nal stamped packages are broken the adulterated butter 
sold from same shall be placed in suitable wooden or 
paper packages, which shall be marked and branded as 
the Commissioner of Internal Revenue, with the approval 
of the Secretary of the Treasury, shall prescribe. Every 
person who knowingly sells or offers for sale, or delivers 
or offers to deliver, any adulterated butter in any other 
form than in new wooden or paper packages as above 
described, or who packs in any package any adulterated 
butter in any manner contrary to law, or who falsely 
brands any package or affixes a stamp on any package 
denoting a less amount of tax than that required by law, 
shall be fined for each offense not more than one thousand 
dollars and be imprisoned not more than two years. 

Pursuant to the above-quoted provisions of law, and 
order to secure uniformity in the matter of mar ki n g?“ad 1 ' g a P 1 pl i i J a e 
branding, and stamping packages containing articles tax- we. 
able under said act, the instructions contained on pages 
38, 39, 40, 41, 42, 43, and 44, of the foregoing regula¬ 
tions relating to the marking, branding, and stamping of 
oleomargarine, so far as applicable, are hereby extended 
to packages containing adulterated butter as defined in 
section 4 of said act. 

CAUTION LABELS.-TO BE AFFIXED TO PACKAGES CONTAIN¬ 

ING ADULTERATED BUTTER. 

Section 4 of said act also provides: 

That every manufacturer of adulterated butter shall caution label, 
securely affix, by pasting, on each package containing 
adulterated butter manufactured by him a label on which 

*For provisions made for inspecting, marking, and branding 
process or renovated butter, see section 5 of act of May 9, 1902 
(pages 15 and 16 of these regulations). 




92 


Notice. 


shall be printed, besides the number of the manufactory 
and the district and State in which it is situated, these 
words: “ Notice.—That the manufacturer of the adulter¬ 
ated butter herein contained has complied with all the 
requirements of law. Every person is cautioned not to 
use either this package (for adulterated butter) again or 
the stamp thereon, nor to remove the contents of this 
package without destroying said stamp, under the penalty 
provided by law in such cases.” Every manufacturer of 
adulterated butter who neglects to affix such label to any 
package containing adulterated butter made by him, or 
sold or offered for sale for or by him, and every person 
who removes any such label so affixed from any such pack¬ 
age shall be fined fifty dollars for each package in respect 
to which such offense is committed. 

The instructions on page 42 of the foregoing regula¬ 
tions, respecting the size of and manner of affixing like 
labels for packages containing oleomargarine, are hereby 
extended and made to apply to packages containing adul¬ 
terated butter. 

ADULTERATED BUTTER FOR EXPORT . 1 

Upon every manufacturer’s package of adulterated but¬ 
ter the law (section 4, act of May 9, 1902) requires that 
there shall be securely affixed, by pasting, a label, on 
which shall be printed the number of the manufactory 
and the district and State in which it is situated, together 
with the following notice: 

Notice.— That the manufacturer of the adulterated but¬ 
ter herein contained has complied with all the require¬ 
ments of law. Every person is cautioned not to use 
either this package (for adulterated butter) again or the 
stamp thereon, nor to remove the contents of this pack¬ 
age without destroying said stamp, under the penalty 
provided by law in such cases. 

The label on which the above notice is to be printed is 
required to be not less than 4 and not more than 6 inches 
long and not less than 2^ inches in width, and the print¬ 
ing thereon must be in plain, open, and legible letters, in 
black ink on white paper, and in addition to the above 
requirements of law contain the words “ For adulterated 
butter.” These labels will be in the following form: 


1 For rules governing the withdrawal free of tax for export of 
adulterated butter, see Regulations, No. 29. 



93 


For Adulterated Butter. 

Factory No.-,- District, State of-—. 

Notice.— The manufacturer of the adulterated 
butter herein contained has complied with all the 
requirements of law. Every person is cautioned not 
to use either this package (for adulterated butter) 
again or the stamp thereon again, nor to remove the 
contents of this package without destroying said 
stamp, under the penalty provided by law in such 
cases. 


The label must be securely affixed, by paste, across the 
side of the package in such a way as to be exposed to pub¬ 
lic view and easily read. 

TAX ON ADULTERATED, AND PROCESS OR RENOVATED BUTTER. 

Section 4 of said act of May 9, 1902, provides: 

That upon adulterated butter, when manufactured or 
sold or removed for consumption or use, there shall be 
assessed and collected a tax of ten cents per pound, to be 
paid by the manufacturer thereof, and any fractional part 
of a pound shall be taxed as a pound, and that upon proc¬ 
ess or renovated butter, when manufactured or sold or 
removed for consumption or use, there shall be assessed 
and collected a tax of one-fourth of one cent per pound, 
to be paid by the manufacturer thereof, and any frac¬ 
tional part of a pound shall be taxed as a pound. The 
tax to be levied b}- this section shall be represented by 
coupon stamps, and the provisions of existing laws gov¬ 
erning engraving, issuing, sale, accountability, effacement, 
and destruction of stamps relating to tobacco and snuff, 
as far as applicable, are hereby made to apply to the 
stamps provided b}^ this section. 

That the provisions of sections nine, ten, eleven, twelve, 
thirteen, fourteen, fifteen, sixteen, seventeen, eighteen, 
nineteen, twenty, and twenty-one of “An act defining but¬ 
ter, also imposing a tax upon and regulating the manu¬ 
facture, sale, importation, and exportation of oleomarga¬ 
rine,” approved August second, eighteen hundred and 
eighty-six, shall apply to manufacturers of “ adulterated 
butter ” to an extent necessary to enforce the marking, 
branding, identification, and regulation of the exportation 
and importation of adulterated butter. 

The provisions made in the foregoing regulations for 
the issuing, affixing, and canceling tax-paid stamps for 
oleomargarine, and for the inspection, sampling, exporta- 


Label. 


Tax. 


Ole omavga- 
rine regulations 
made applica¬ 
ble to adulter¬ 
ated butter. 










94 


Tax paid 
stamps. 


Export 
stamps. 


Collectors’ re¬ 
turns. 


tion, or importation of that article, are hereby extended 
and made to apply to adulterated butter taxable under 
said act of May 9, 1902. 

Appropriate tax-paid stamps to be affixed to packages 
containing adulterated butter (subject to a tax of 10 cents 
per pound) and for packages containing process or reno¬ 
vated butter (subject to tax at the rate of one-fourth of 
1 cent per pound) will be furnished to collectors on requi¬ 
sition. While the.act does not prescribe the size of pack¬ 
ages in which process or renovated butter shall be packed, 
it provides that any fractional part of a pound shall be 
taxed as a pound. Coupon stamps for such packages will 
be provided in denominations of 10, 20, 40, 50, 60, and 100 
pounds, each stamp having nine coupons attached. 

Export stamps for adulterated butter are- printed in 
book form, each book containing 400 stamps, and are 
issued to collectors on requisition. These stamps are 
similar to the oleomargarine export stamps and must be 
filled out, affixed and canceled in like manner. 

collectors’ returns. 

Each collector in whose district adulterated butter or 
process or renovated butter is manufactured will render 
monthly an account (in the case of adulterated butter) on 
Form 504, and (in case of process or renovated butter) on 
Form 515, which account, in each case, will be prepared 
and forwarded to the Commissioner of Internal Revenue, 
as in the case of monthly oleomargarine account, Forms 
516 and 517. 

Wholesale dealers in process or renovated butter will 
not be required to keep books or render any returns in 
relation thereto until further advised. As the law does 
not define a wholesale dealer in process or renovated but¬ 
ter, nor imjDose a special tax on such business, it is possi¬ 
ble it will not be necessary for them to keep any books or 
render returns. 

John G. Capers, 

Commissioner of Internal Revenue. 

Approved: 

J. B. Reynolds, 

Acting Secretary of the Treasury. 


REGULATIONS CONCERNING RENOVATED BUTTER 
UNDER INTERNAL REVENUE ACT 
APPROVED MAY 9,1902. 


Revised July, 1907. 


( 95 ) 













RENOVATED BUTTER (OR “PROCESS BUTTER”). 


Extracts from act of May 9,1902: 

******* 

44 Sec. 4. That for the purpose of this act 4 butter ’ is hereby defined 
to mean an article of food as defined in 4 An Act defining butter, also 
imposing a tax upon and regulating the manufacture, sale, importa¬ 
tion, and exportation of oleomargarine,’ approved August second, 
eighteen hundred and eighty-six; that 4 adulterated butter ’ is hereby 
defined to mean a grade of butter produced by mixing, reworking, 
rechurning in milk or cream, refining, or in any way producing a uni¬ 
form, purified, or improved product from different lots or parcels of 
melted or unmelted butter or butter fat, in which any acid, alkali, 
chemical, or any substance whatever is introduced or used for the 
purpose or with the effect of deodorizing or removing therefrom 
rancidity, or any butter or butter fat with which there is mixed any 
substance foreign to butter as herein defined, with intent or effect of 
cheapening in cost the product or any butter in the manufacture or 
manipulation of which any process or material is used with intent or 
effect of causing the absorption of abnormal quantities of water, milk, 
or cream; that 4 process butter ’ or 4 renovated butter ’ is hereby defined 
to mean butter which has been subjected to any process by which it is 
melted, clarified or refined and made to resemble genuine butter, 
always excepting 4 adulterated butter ’ as defined by this Act.” 

That special taxes are imposed as follows: 

44 Manufacturers of process or renovated butter shall pay fifty dol¬ 
lars per year and manufacturers of adulterated butter shall pay six 
hundred dollars per year. Every person who engages in the produc¬ 
tion of process or renovated butter or adulterated butter as a business 
shall be considered to be a manufacturer thereof. 

* ***** * 

44 Every person who sells adulterated butter shall be regarded as a 
dealer in adulterated butter. And'sections thirty-two hundred and 
thirty-two, thirty-two hundred and thirty-three, thirty-two hundred 
and thirty-four, thirty-two hundred and thirty-five, thirty-two hun¬ 
dred and thirty-six, thirty-two hundred and thirty-seven, thirty-two 
hundred and thirty-eight, thirty-two hundred and thirty-nine, thirty- 
two hundred and forty, thirty-two hundred and forty-one, and thirty- 
two hundred and forty-three of the Revised Statutes of the United 
States are, so far as applicable, made to extend to and include and 
apply to the special taxes imposed by this section and to the person 
upon whom they are imposed. 

44 That every person who carries on the business of a manufacturer 
of process or renovated butter or adulterated butter without having 

( 97 ) 


6153—07-7 


98 


paid the special tax therefor, as required by law, shall, besides being 
liable to the payment of the tax, be fined not less than one thousand 
and not more than five thousand dollars; and every person who 
carries on the business of a dealer in adulterated butter without 
having paid the special tax therefor, as required by law, shall, besides 
being liable to the payment of the tax, be fined not less than fifty nor 
more than five hundred dollars for each offense.” 

That every manufacturer of process or renovated butter or adulter¬ 
ated butter shall file with the collector of internal revenue of the dis¬ 
trict in which his manufactory is located such notices, inventories, and 
bonds, shall keep such books and render such returns of material and 
products, shall put up such signs and affix such number of his factory, 
and conduct his business under such surveillance of officers and agents 
as the Commissioner of Internal Be venue, with the approval of the 
Secretary of the Treasury, may by regulation require. But the bond 
required of such manufacturer shall be wdth sureties satisfactory to 
the collector of internal revenue, and in a penal sum of not less than 
$500 and the sum of said bond may be increased from time to time 
and additional sureties required at the discretion of the collector or 
under instructions of the Commissioner of Internal Ee venue. 

that upon process or renovated butter, when manufactured or sold 
or removed for consumption or use, there shall be assessed and col¬ 
lected a tax of one-fourth of one cent per pound, to be paid by the 
manufacturer thereof, and any fractional part of a pound shall be 
taxed as a pound. The tax to be levied by this section shall be repre¬ 
sented by coupon stamps, and the provisions of existing laws 
governing engraving, issuing, sale, accountability, effacement, and 
destruction of stamps relating to tobacco and snuff, as far as appli¬ 
cable, are hereby made to apply to stamps provided by this section. 

INSPECTION, MARKING AND BRANDING SUBJECT TO REGULATIONS OF 
SECRETARY OF AGRICULTURE. 

Sec. 5. All parts of an Act providing for an inspection of meats 
for exportation, approved August thirtieth, eighteen hundred and 
ninety, and of an Act to provide for the inspection of live cattle, hogs, 
and the carcasses and products thereof which are the subjects of inter¬ 
state commerce, approved March third, eighteen hundred and ninety- 
one, and of amendment thereto approved March second, eighteen hun¬ 
dred and ninety-five, which are applicable to the subjects and purposes 
described in this section shall apply to process or renovated butter. 
And the Secretary of Agriculture is hereby authorized and required 
to cause a rigid sanitary inspection to be made, at such times as he 
may deem proper or necessary, of all factories and storehouses where 
process or renovated butter is manufactured, packed, or prepared for 
market, and of the products thereof and materials going into the man¬ 
ufacture of the same. All process or renovated butter and the pack¬ 
ages containing the same shall be marked with the words “ Eenovated 
Butter” or “Process Butter” and by such other marks, labels, or 
brands and in such manner as may be prescribed by the Secretary 
of Agriculture, and no process or renovated butter shall be shipped or 
transported from its place of manufacture into any other State or 



99 


Territory or the District of Columbia, or to any foreign country, until 
it has been marked as provided in this section. The Secretary of 
Agriculture shall make all needful regulations for carrying this sec¬ 
tion into effect, and shall cause to be ascertained and reported from 
time to time the quantity and quality of process or renovated butter 
manufactured, and the character and the condition of the material 
from which it is made. And he shall also have power to ascertain 
whether or not materials used in the manufacture of said process or 
renovated butter are deleterious to health or unwholesome in the fin¬ 
ished product, and in case such deleterious or unwholesome materials 
are found to be used in product intended for exportation or shipment 
into other States or in course of exportation or shipment he shall 
have power to confiscate the same. Any person, firm, or corporation 
violating any of the provisions of this section shall be deemed guilty 
of a misdemeanor and on conviction thereof shall be punished by a 
fine of not less than fifty dollars nor more than five hundred dollars 
or by imprisonment not less than one month nor more than six months, 
or by both said punishments, in the discretion of the court. 

REGULATIONS PRESCRIBED IN REGARD TO “ RENOVATED BUTTER,” IN 

ACCORDANCE WITH THE ACT OF CONGRESS APPROVED MAY 9, 1902. 

Regulation 1 . The act of May 9, 1902, gives to the manufacturer 
of renovated or process butter the option to call the product “ reno¬ 
vated butter ” or to call it “ process butter.” 

For the sake of brevity the words “ renovated butter ” are used in 
these regulations as synonymous with the words “ process butter.” 
Therefore, any marking or branding with the words “ renovated 
butter,” required by these regulations, will be satisfied if the words 
“ process butter ” be used in lieu of the words “ renovated butter.” 

Regulation 2. The following explanation of the definition of 
renovated butter, as it occurs in the law, is adopted for guidance in 
connection with these regulations: 

(а) This grade or kind of butter may be made from one or more 
lots or parcels of butter, which has been or have been “ subjected to 
any process by which it is melted, clarified, or refined, and made to 

/resemble genuine butter, always excepting ‘ adulterated butter,’ as 
defined by this act.” It may or may not have common salt and 
harmless artificial coloring added. 

(б) The law defines three processes of refining butter, which, if 
used, make the resultant article adulterated butter, in contradistinc¬ 
tion to renovated butter, as follows: 

First, if in any way, any acid, alkali, chemical, or any substance 
whatever is introduced or used for the purpose or with the effect of 
deodorizing or removing therefrom rancidity; second, if there is 
mixed any substance foreign to butter with intent or effect of cheapen¬ 
ing in cost the product; and third, if, in any way, the product is 
made to contain abnormal quantities of water, milk, or cream. 


100 


Blitter which has been renovated and has 16 per cent or more of 
moisture will be held to contain abnormal quantities of water, milk, 
or cream, and will, therefore, be classed as adulterated butter. 

Regulation 3. Section 4 of the act of May 9, 1902, provides: 

“ Manufacturers of process or renovated butter shall pay fifty dol¬ 
lars per year * * *. Every person who engages in the production 

of process or renovated butter * * * as a business shall be con¬ 

sidered to be a manufacturer thereof.” 

The special-tax year begins July 1. The special tax of manufac¬ 
turers who commence business in the month of July will be reckoned 
for one year, and the tax of manufacturers who commence business 
after the month of July will be reckoned proportionately from the 
first day of the month from which the liability to special tax com¬ 
menced to the first day of July following. 

Regulation 4. Every manufacturer of renovated butter, before 
commencing business (or at least within the month in which liability 
to special tax commenced), must register with the collector of the 
district in which the business is to be carried on, his name, or firm 
or corporate name, place of residence, nature of business, and the 
place where such business is to be carried on, and procure a special- 
tax stamp at the rate of $50 per annum, which stamp he shall place 
and keep conspicuously posted in his establishment or place of busi¬ 
ness; and on the first day of July in each year he must again so 
register and procure a new special-tax stamp and post it as above 
stated. 

Regulation 5. Every manufacturer of renovated butter will be 
required to file with the collector a notice on Form 507, together with 
an inventory, Form 509, when making application for special-tax 
stamp as manufacturer. At the same time he will file a bond, Form 
508, in a penal sum to be fixed by the collector of internal revenue 
for his district, but in no case less than $500. 

Collectors of internal revenue will decline to approve the bond of a 
manufacturer of renovated butter until they are satisfied that the 
premises to be used for the manufacture of that article are entirely 
separate from those used for the manufacture of adulterated butter or 
oleomargarine, or for the handling or manipulation of butter not 
taxable under the act of May 9, 1902. (See Treas. Dec. No. 588, Oct. 
6, 1902.) 

Regulation 6. Collectors will give to each manufacturer of reno¬ 
vated butter in their respective districts a factory number, the num¬ 
bers to be consecutive and not thereafter changed. A new number 
should be given to a new factory. The change in ownership of a 
factory does not necessitate a change in the factory number. 

Regulation 7. Every manufacturer of renovated butter shall place 
and keep over the principal entrance of the factory wherein his 


101 


business is carried on, so that it can be distinctly seen, a sign, with 
letters thereon not less than 3 inches in height, printed in oil colors 
or gilded, giving his full name and business and the number of his 
factory, as follows: 

A- B- 

Manufacturer of Renovated Butter. 

Factory No.-. 

Regulation 8. Under the provisions of section 4 of act of May 9, 
1902, the tax of one-fourth of one cent per pound imposed thereby on 
renovated butter is to be represented by coupon stamps, to be pro¬ 
vided by the Commissioner of Internal Revenue as authorized by 
existing laws. A fractional part of a pound shall be taxed as a 
pound. 

Regulation 9. For this purpose tax-paid stamps will be furnished 
in denominations of 10, 20, 30, 40, 50, 60, and 100 pounds, each stamp 
bearing 9 coupons. Such stamps must contain the name of the col¬ 
lector, his district and State, and show thereon the date of payment 
of the tax, the number of pounds, and the number of the factory. 

Regulation 10. On the withdrawal of a package of renovated 
butter the proper tax-paid stamp must be affixed thereto by the manu¬ 
facturer, by the use of adhesive material, and if the package be of 
wood, not less than five tacks must be driven through each stamp, 
one in each corner and one in the middle of the stamp. The stamp 
when so affixed must be immediately cancelled. The blank spaces 
reserved for the manufacturer must be properly filled up by him in 
accordance with the plain requirements of the form of the stamp. 
This is not optional with the manufacturer, but a requirement. In 
the blank space in the lower left-hand corner of the stamp must be 
inserted the date when the stamp was affixed and cancelled. This is 
required to be done before the renovated butter is removed from the 
factory. The date of issue must be entered on the stamp by the col¬ 
lector at the time the same is issued. 

For the purpose of cancellation the pianufacturer will use a stencil 
plate or rubber stamp, by which there shall be printed five parallel 
waved lines long enough to extend beyond each side of the stamp 
onto the package. The printing on the stamp must be plain and 
distinct, and the waved lines must be fine enough to avoid obliter¬ 
ating the reading matter and figures contained in the tax-paid stamp. 
The cancelling must be with blacking or other durable coloring mate¬ 
rial over and across the stamp and in such manner as not to daub 
and make it illegible. 

Regulation 11. The stamp must be affixed to the side of the pack¬ 
age, to a smooth surface, in such a manner as to be readily cancelled 




102 


in the manner above described. When a package contains a number 
of pounds between 10 and 20, a ten-pound stamp with the necessary 
number of coupons attached will be issued to cover the net weight. 
Packages containing more than 20 pounds and less than 30 pounds 
will have attached a twenty-pound stamp with a suitable number of 
coupons to represent the contents. Larger-sized packages will be 
similarly stamped. 

Regulation 12. Every manufacturer’s package of. renovated but¬ 
ter shall have affixed thereto a label on which shall be printed the 
number of the factory and the revenue district and State in which 
it is located, together with the following notice: 

Form for Renovated Butter. 

Factory No.-,-district, State of-. 

Notice. —The manufacturer of the renovated butter herein con¬ 
tained has complied with all the requirements of the law and the 
• regulations authorized thereby. Every person is cautioned not to use 
again either this package for renovated butter or tax stamp thereon 
or to remove the contents of this package without destroying said 
stamp, under penalty provided by law in such cases. 

This label or notice shall be printed in black upon white paper and 
shall be not less than five nor more than seven inches long and not less 
than three inches in width. The label must be securely affixed by paste 
to the side of the package and opposite or on a different side (not the 
top or bottom) from that to which the tax stamp is attached and in 
such a way as to be exposed to view and easily read.- The words 
“ Renovated butter ” in this notice must be printed in one or two 
lines and in plain gothic letters at least three eighths inch square. 
There must also be plainly marked or stenciled on the outside of 
every package the gross, tare, and net weight in pounds. 

Regulation 13. Each manufacturer of renovated butter is required 
to keep books and make returns showing the quantity of materials 
received on the factory premises and the quantity of finished product 
removed therefrom. Sample pages of book (Form No. 511) to be 
kept by manufacturers will be furnished to collectors, but the book 
must be provided by the manufacturer, as the same is not supplied 
by the Government. 

Regulation 14. Form No. 499 has been prescribed for monthly 
returns of manufacturers of renovated butter, and such forms will be 
furnished through the collectors of internal revenue. 

In preparing Form 499 manufacturers should note, on pages 1 and 
2, the quantities of materials used in producing renovated butter each 
day of the month and the quantity produced. On page 2 is a space 
provided for a special account of tax-paid renovated butter returned 
to the factory. On inside pages of Form 499 should be noted the 


103 


date when renovated butter is sold, removed, or destroyed, together 
with the amount by packages and pounds; also to whom sold or con¬ 
signed, giving the name, place of business, residence, county, and 
State. 

The last page of this Form contains a recapitulation of the quantity 
of renovated butter produced and disposed of during the month and 
the quantity on hand at the beginning and at the end of each month. 
This should be prepared with great care. The certificate in this form 
must be executed by the manufacturer, or his duly authorized repre¬ 
sentative, and be sworn to before a deputy collector or an officer 
authorized to administer oaths generally. 

Regulation 15. Whenever aijy manufacturer’s package of reno¬ 
vated butter is empty it shall be the duty of the person who removes 
the contents thereof to destroy utterly the tax-paid stamp on such 
empty package. Any person having in his possession empty reno¬ 
vated butter packages the tax-paid stamps on which have not been 
destroyed will be liable to a heavy penalty. 

The ruling by the Commissioner of Internal Revenue, under date 
of October 6, 1902, permitting the shipment of original packages of 
renovated butter covered with jute, burlap, or heavy paper from the 
place of manufacture or place of business of the wholesale dealer is 
hereby revoked, and all packages of renovated butter so covered or 
wrapped which may be found on the market on and after the date 
that these regulations become effective will not be deemed in com¬ 
pliance with the law. 

Regulation 16. Attention is called to the fact that the act named 
makes no provision for the exportation, free of tax, of renovated but¬ 
ter, nor for any drawback on such articles when exported. Conse¬ 
quently all renovated butter for export must be stamped the same as 
for domestic market. 

The act of May 9, 1902, neither defines nor imposes special taxes 
upon wholesale or retail dealers in renovated butter. Renovated 
butter must always bear or be accompanied by the evidence that the 
manufacturer’s tax thereon has been paid. 

Regulation IT. Officers or agents of the Department of Agricul¬ 
ture shall make a rigid sanitary inspection of all factories and store¬ 
houses where renovated butter is manufactured, packed, or prepared 
for market. The time of such inspection shall be at the discretion 
of the Secretary of Agriculture. Full report covering the sanitary 
conditions shall be made to the Secretary of Agriculture. 

Regulation 18. Inspection shall also be made of the materials 
going into the manufacture of renovated butter and the product 
thereof, and the inspector shall report the quantity and quality of 
renovated butter manufactured and the character and the condition 
of the materials from which it is made. If materials used in the 


104 


manufacture of renovated butter are deleterious to health or unwhole¬ 
some in the finished product, they shall be confiscated. 

Regulation 19. According to the Food and Drugs Act of June 30, 
1906, if renovated butter consists in whole or in part of a filthy, 
decomposed, or putrid animal or vegetable substance it shall be 
deemed adulterated under that act. 

Regulation 20. Each manufacturer’s package containing 10 pounds 
or more solid packed renovated butter must have branded into the 
upper surface of the renovated butter the words “ Renovated butter,” 
in one or two lines, the letters to be gothic style, not less than one-half 
inch square, and depressed not less than one-eighth of an inch. 
Prints, bricks, or rolls must be similarly branded, the letters to be 
not less than three-eighths inch square. 

Regulation 21. All coverings or wrappers of prints, bricks, or 
rolls of renovated butter, whether paper or cloth, must have the 
words “ Renovated butter,” in one or two lines, marked, branded, 
stenciled, or printed thereon in black or nearly black upon white or 
light ground, in full-faced gothic letters, not less than three-eighths 
inch square, so placed as to be the only marking upon one side or 
surface of the parcel so packed. 

Regulation 22. Any marks, brands, or labels other than those 
mentioned in these Regulations, with the exception of the shipping 
marks used in commerce, must be approved by the Secretary of 
Agriculture before such marks, brands, or labels may be used by the 
manufacturers. 

Regulation 23. Copies of all approved marks, brands, or labels 
must be kept on file and accessible to the officer or agent of the De¬ 
partment of Agriculture, at the office or place of business of the 
manufacturer. 

Regulation 24. While the act of May 9, 1902, does not give the 
Secretary of Agriculture authority to prescribe regulations for mark¬ 
ing or branding other than manufacturers’ packages, the Food and 
Drugs Act of June 30, 1906, prohibits the misbranding of all food 
articles entering into interstate commerce. An article is misbranded 
in the following cases: 

First. If it be an imitation of or offered for sale under the dis¬ 
tinctive name of another article. 

Second. If it be labeled or branded so as to deceive or mislead the 
purchaser. 

Third. If in package form, and the contents are stated in terms of 
weight or measure, they are not plainly and correctly stated on the 
outside of the package. 

Fourth. If the package containing it or its label shall bear any 
statement, design, or device regarding the ingredients of the sub¬ 
stances contained therein, which statement, design, or device shall be 
false or misleading in any particular. 


105 


Regulation 25. Renovated butter for export must be marked and 
branded as for the domestic market. All renovated butter offered 
for export must be inspected by duly authorized officers or agents of 
the Department of Agriculture. After such officer has determined its 
purity, quality, and grade, he shall, if said renovated butter be found 
pure and properly branded and marked, issue a certificate setting 
forth these facts. 

Regulation 26. Officers of the Department of Agriculture finding 
renovated butter on the market not bearing evidence that the tax 
thereon has been paid, or without the caution notice required, or 
butter suspected of being renovated or adulterated, will report the 
facts in the case to the nearest internal-revenue officer, and, if neces¬ 
sary, secure samples of the suspected product for transmission to the 
laboratory of the Internal Revenue Bureau foi; chemical analysis. 
Likewise, revenue officers finding renovated butter on the market 
which does not comply with these regulations should promptly 
notify the Department of Agriculture, or its nearest representative, 
of the location of such butter and the facts relating thereto. 

Regulation 27. The following directions are given for taking 
samples of suspected butter: 

At least a pound sample should be taken, which should be made up 
of portions taken from various parts of the package by means of a 
spoon or trier. This sample should be at once transferred to the 
container in which it is to be shipped, which must be water-tight and 
'perfectly dry. All wrappings of any kind must be removed before 
the sample is placed in the container. 

Glass fruit jars, with tops that can be screwed down upon rubber 
rings, or tin fruit cans, with tops that can be readily soldered on, 
are satisfactory and readily obtainable. 

The container must be marked so that it can be identified by the 
officer taking the sample and it must be accompanied with a full 
description of the sample as to origin and suspected adulteration, 
either as a letter of transmittal or with the sample. 

The proper sealing and shipping of the sample is of great impor¬ 
tance, for if the analyst can not testify that it was received with 
seals unbroken the evidence is always open to attack. 

The sealing is best accomplished by placing the vessel containing 
the substance in a box or other suitable receptacle, and securing the 
latter with string or tape in such a manner that the package can not 
be opened without cutting or untying the tape; the knots and inter¬ 
sections of the latter should then be covered with sealing wax and 
impressed by means of a broad die bearing letters or characters 
easily recognized. 

The sealing of the bottle or vessel itself is not desirable, as the wax 
is likely to get into the sample when it is opened. The sealed box 
may then be inclosed in another box for shipment, if desirable. The 


106 


method of sealing ordinarily used by express agents will be satis¬ 
factory if it is done in the presence of the officer transmitting the 
sample, and may be applied to the outer box, no other sealing being 
necessary. This is the most convenient and economical method when 
a number-of samples are transmitted at one time by express. 

Samples should be addressed to the Commissioner of Internal 
Revenue, care of Laboratory, Washington, D. C. 

Regulation 28. The word “ adulterated,” herein used under the act 
of May 9, 1902, refers to the definition of the taxable article as given 
in Regulation 2, while the same word employed in the Food and 
Drugs Act of June 30, 1906, has reference to the classification under 
that act. 

Regulation 29. Correspondence and all administrative details 
under the Regulations numbered 3 to 16, inclusive, above, are assigned 
to the Commissioner of Internal Revenue-, Treasury Department. 
All matters under Regulations 17 to 26, inclusive, are assigned to the 
Chief of the Bureau of Animal Industry, Department of Agriculture. 

Regulation 30. These regulations shall become and be effective on 
and after August 15, 1907. 

John G. Capers, 

Commissioner of Internal Revenue. 

Approved: 

Geo. B. Cortelyou, 

Secretary of the Treasury. 

James Wilson, 

Secretary of Agriculture. 

July 2,1907. 


INDEX. 


y 


Abstracts, sales of oleomargarine_ 

Address, consignees_ 

Adulterated butter: 

Dealers’ packages_ 

Defined_ 

Export_ 

Law_ _l_ 

Manufacturers’ bonds, notices, inventories, etc 

Regulations_ 

Affidavit, surety on bond: 

Form 33_ 

Form 400_ 

Appeals from decisions of Commissioner_ 

Arrangement of monthly return: 

Manufacturers _ 

Wholesale dealers_'_ 

Artificial coloration_ 

Assessments, tax_ 

Assignee not liable to special tax_ 

Authority for regulations_ 

Blanks: 

Books for oleomargarine_ 

Manufacturers may furnish own_ 

Bonds, manufacturers’_ 

Books: 

Wholesale dealer in adulterated butter_ 

Wholesale dealer in oleomargarine_ 

Branding, stenciling oleomargarine_ 

Butter: 

Adulterated, defined_ 

Creamery_ 

Dealers defined_ 

Defined _ 

“ Ladled ”_ 

Process or renovated_ 

Special taxes, dealers- 

Special taxes, manufacturers- 

“ Sweet ”_ 

When classed as oleomargarine- 

“ Whey ”_ 

Canvass, deputy collector for taxes- 


Page. 

82-83 

59 


_14,91 

——_12,85 

11, 15, 92, 93, 94 

_ 12-16 

_13,89 

_ 85-94 


_ 34-35 

_ 34-35 

_ 10,70 

_48-49 

_ 57-59 

_6,28-29 

_ 8,44 

_52,63 

_11,19 

_ 84 

_ 49 

7, 13, 30, 89, 98 

_16,89-90 

_16,56 

_7-8,39 

_ 12,85,87 

_ 87 

_13,88 

5,12, 23, 85-86 

__ 87 

_12,96,99 

_13,88 

_12,88,97 

_ 88 

_ 88 

_ 88 

_ 45 


107 






































108 


INDEX. 


Caution label: 

Adulterated butter_ 

Oleomargarine_ 

Process or renovated butter_ 

Certificate destruction of oleomargarine_ 

Chemist and microscopist_ i _ 

Cloth or paper wrappers, oleomargarine_ 

Cocoanut oil not taxable as oleomargarine_ 

Collectors’ returns: 

Adulterated butter_ 

Oleomargarine___ 

Process or renovated butter_ 

Coloring in butter___ 

Commissioner to decide character of product-- 

Consignment on orders_ 

Copartnership, one special tax_ 

Daily report, examinations with microscope by deputy collector.. 
Dealers: 

Defined_ : _— 

Liability as manufacturer_ 

Furnish own blanks_ 

Device on oleomargarine wrappers_ 

Examinations with microscopes_ 

Embellishments on prints, bricks, etc_ 

Exceptions: 

Head of family___ 

Restaurant_:_ 

Sales of uncolored oleomargarine only_ 

Export: 

Brands__ 

Packages_ j,_ 

Stamps_ 

Factory: 

Numbers_ 

Separate premises_ 

Signs_ 

Family defined_ 

Fines: 

Failure to pay special tax as dealers_ 

Failure to pay special tax as manufacturers_ 

Forfeiture: 

Failure to comply with law_ 

Unstamped or deleterious oleomargarine_ 

Forms: 

Concerning adulterated and process or renovated butter_ 

Concerning oleomargarine__ 

General regulations, collection of all taxes_ 

Goods, dealer responsible_ 

Government brand, not obscured_ 

Government record: 

Manufactures— 

Adulterated butter__ 

Oleomargarine_ 

Process or renovated butter_ 


Page. 
14, 91, 92 
__ 8,42 

__ 102 
47 

__ 10,70 
41 

25 

__ 90,94 
__ 81,82 
__ 90,94 
__ 5,24 

__ 10,70 
56 
63 


6,13, 50, 61, 88 

_ 28 

_ 57 

_ 38 

_ 76 

_ 38 

_ 27 

_ 64 

_6, 50, 61 

_ 11,41 

_ 41 

_43,94 

— 7, 13, 36, 90 
_37,90 

7, 13, 37, 90 
_ 37 

7,51,62,89 

— 7,13,29,89 

_ 11 

_10,72 

_ 90 

_ 81-84 

_ 19-23 

_ 64 

_ 41 


13, 90 
7, 46 
13, 90 













































INDEX. 


109 


Government record—Continued. - Page. 

Wholesale dealers— 

Adulterated butter_ 1G, 5G 

Oleomargarine_16, 56 

Imported oleomargarine: 

Affixing stamps_ 79 

Caution labels not required_1_ 80 

Not stamped unless for consumption or sale_79-80 

Penalty— 

Failure to stamp_ 79 

Violations by customs officer_ 79 

Tax on_ 79 

Warehousing _ 79 

Withdrawn for consumption_ SO 


Inspection: 

General_ 

Renovated butter _ 

Instructions to collectors concerning microscopes_ 

Inventories, manufacturers_ 

Ivo-nut not taxable as oleomargarine_ 

Labels: 

Affixed to packages adulterated butter_ 

Affixed to packages oleomargarine_ 

Affixed to packages process or renovated butter 
Liability: 

Agents or brokers_ 

Assignee___ 

Legal representative__ 

Receiver _ 

Successor to firm_ 

Transportation company_ 

Trustee_ 

Manufacturer: 


Adulterated butter, defined-12, 88 

Dealer coloring oleomargarine_ 27 

Labels _ 8, 14, 37-38, 91-92,102 

Labels, how affixed- 42 

Monthly returns- 47, 84, 90 

Oleomargarine, defined-6, 26-28 

Original packages- 7,13, 37, 91 

Process or renovated butter, defined-12, 97 

Register with collector- 29, 89,100 

Special taxes---■- 6,12, 26, 88, 97 

Marks, brands, etc- 7, 14,15, 37-39, 64, 91, 98 

Memorandum of examinations by deputy collectors-76-77 

Microscopes: 

Constant use_ 78 

Description and method of using-74—75 

Notices, bonds, inventories- 7,13, 30, 31, 89, 98 

Oleomargarine: 

Defined_5, 23, 88 

Export_11, 69-70 

Forfeited_72-73 


_15,103 

_ 75 

7. 13, 30, 89, 98 
_ 25 

_14,91,92 

_8,37-38 

_ 102 

_52,55 

_52,63 

_ 63 

_ 52 

_ 63 

_ 52 













































110 


INDEX. 


Oleomargarine—Continued. Page. 

Law_ 5-12 

Law, constitutional, decision United States Supreme Court-1G-17 

Packages: 

Adulterated butter, original-91 

Retail dealers_9, 64-66 

Oleomargarine, original- L 37-38 

Reuse prohibited_ 38 

Penalties: 

Defacing stamps_ 19 

False entry in Government record_■—--- 19 

Failure, destroy stamps on empty packages--10, 67 

Failure to pay special tax--7,13, 51, G2 

Failure to render returns- 19, 51 

Purchasing oleomargarine not stamped-•- 0, 68 

Purchasing oleomargarine of manufacturer not having paid special 

tax_ 0 

Selling imported oleomargarine not stamped_ 9 

Violation by manufacturer of oleomargarine-7 

Violation by customs officer_ 9 

Process or renovated butter, defined- 12,85,97,99 

Removal special-tax stamp, collector to be notified-— 55, 63 

Receipt for microscope_ 75 

Receiver not liable to special tax-52, 62 

Records: 

Adulterated butter __ 90 

Oleomargarine_ 81, 84 

Open to inspection_ 46 

Renovated butter_ 90 

Recovery of fines_— 11 

Regulations: 

Authority for_11,19 

Concerning oleomargarine, adulterated butter___26-94 

Marking renovated butter, Secretary of Agriculture_ 15 

Renovated butter: 

Defined_ 12 

Law_ 12-16 

Regulations_95-106 

Reports or returns: 

Authority for__ 7,13,16 

Legible_49, 57 

Must be signed_:_59-60 

Person signing_._ 48 

When made_ 48 

Report of taxes for assessment_ 45 

Restaurant, not dealer_ 64 

Restrictions concerning prints, etc., oleomargarine_ 38 

Retail dealers: 

Defined_ 6, 61 

Packages_7, 64r-65-66 

Packages, wrappers for-.- 66 

Required to register_ 62 

Special taxes_6,13, 61, 88 














































INDEX. 


Ill 


Sales. Page. 

Packages at factory_ 30 

Upon orders_ 47 

Samples: 

Examination, how put up, etc_ 71 

Exhibition_r___ 45 

Inspection of_ 25 

Letter of transmittal__!_ 71 

Packages, how reported_ 57 

Suspected butter for analysis_ 78 

Seizure and forfeiture_10, 11, 28 

Separate premises for each product_ 37 

Separate reports, etc., for each class oleomargarine-__48, 57 

Signs of manufacturers_ 7,13, 37, 89, 98, 101 

Size: 

Letters, brands of manufacturers-.._ 39-40, 91, 102 

Letters in private marks_ 40 

Packages, adulterated butter, oleomargarine_10, 38, 91 

Special instructions marking consignees___49, GO 

Special taxes: 

Dealers adulterated butter_ 13, 88 

Dealers oleomargarine__6, 50, 61 

List of_ 17 

Manufacturers adulterated butter--- 12, 88 

Manufacturers oleomargarine-:- 6,26 

Manufacturers process or renovated butter_12, 97,100 

When due, how reckoned_ 26, 50, 61, 62 

Stamps: 

Adulterated butter___14, 93 

Affixed, how-.--— 43-44 

Canceled_:- 44,101 

Empty packages, on- 10, 67 

Export for_ 11,44,94 

Furnished, how_ 43, 94,101 

Imported oleomargarine- 9, 80 

Oleomargarine____ 8, 43 

Process or renovated butter-14, 93, 98 

Special tax, each place of business- 63 

Special tax, market house- 93 

Special tax not transferable-,-55,63 

Storing oleomargarine remote from factory- 29 

Subdivision packages for export- 39 

Successor, liability to special tax- 63 

Taxes: 

Adulterated . butter-14, 93 

Imported oleomargarine--- 9, 79 

List of- 17 

Oleomargarine___8,42-43 

Process or renovated butter--- 14, 93, 98 

Taxable pounds_ j -8, 46, 59 

Tax year, how reckoned-27, 50, 61 

Transportation company, liability to special tax- 52 

Trustee, liability to special tax- 52,62 

















































112 


INDEX. 


« r V 

Page. 

Use of word “ butterine ” prohibited_ 5, 40 

Use of private marks, original packages_ 40 

Warehousing imported oleomargarine_ 9, 79 

Wholesale dealers: 

Adulterated butter, defined__ 13, 88 

Oleomargarine, defined_ 6,50 

Packages_ 6,14, 50, 55, 91 

Required to register_ 51 

Selling both classes oleomargarine_50-51 

Special taxes_6,13, 50, 51, 88 

Wrappers for prints, bricks, etc., oleomargarine_ 38 

Wrappers for retail dealers’ packages_ 64-66 

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